Why you want to do business with reputable suppliers is illustrated by this story from the Better Business Bureau.
New York Attorney General Andrew M. Cuomo made settlement agreements in June 2009 with seven online electronics stores located in New York for engaging in illegal and fraudulent business practices that scammed consumers.
“These companies engaged in the worst kinds of consumer fraud, from classic bait-and-switch schemes to blatant lies and bullying sales tactics,” said Attorney General Cuomo. “Today’s agreements will protect consumers nationwide from these types of predatory online merchants, as well as deliver much-needed restitution to hundreds of individuals who fell victim to these illegal practices. Let this be a message to online merchants everywhere: such abuse of consumers and violation of the law will not be tolerated.”
How the scams worked: the article explains
“Attorney General Cuomo’s investigation revealed that these seven companies would advertise consumer electronics, such as cameras, camcorders, projectors, and related accessories online at prices significantly lower than their competitors to induce consumers to place orders via the internet. Once an order was placed, the companies would call consumers and try to sell them additional or “upgraded” merchandise at inflated prices. If the consumer refused to purchase the additional merchandise, the companies would cancel the sale or claim the item was backordered for months. If the consumer did agree to purchase the additional merchandise, the companies would send them lower quality merchandise than what was promised, or merchandise that the consumer never ordered in the first place. When customers tried to return the items, they would either be denied or be slammed with undisclosed fees.”
The companies also used fake testimonials, and astroturfing. Here are the company names:
“Under the agreements secured today by Cuomo, two of the companies, Camera Wiz and Sonic Cameras, will dissolve completely. The following five companies will completely revamp their business practices and be subject to ongoing monitoring: Best Price Camera, Foto Connection, 1 Way Photo, 86th Street Photo and Broadway Photo, LLC.”
To read the full article, visit the BBB website.
