Consumer Affairs: Look for Red Flags to Avoid Being Swindled

NASHVILLE – To help consumers make the most of their hard-earned money, the Tennessee Department of Commerce & Insurance’s (TDCI) Division of Consumer Affairs provides ways to recognize and avoid unscrupulous businesses.

“The Division of Consumer Affairs strives to advocate, educate, and protect Tennesseans against fraud, false advertising, misrepresentation, and deceptive business practices,” said TDCI Deputy Commissioner Bill Giannini. “When in doubt, contact us to ask if complaints have been filed against a company or individual you are considering doing business with.”

The Division offers the following guidelines to help consumers identify red flags and avoid bad business.

Red Flags:

• The company does not list a physical address. This does not necessarily mean the company is illegitimate, but if the company does not have a physical address, you will not be able to visit the business location to request a refund or resolve your dispute in person.
• The company’s phone number does not work. Do not conduct business with a company or individual that does not offer a working phone number.
• The company requests an excessively large, upfront deposit. Do not offer personal information or payment in advance of service unless you have verified the company is legitimate. Once you pay the deposit, make sure you are given a receipt.

Consumer Tips:

• As a general rule, if it sounds too good to be true, it probably is.
• Research, research, research. Before making an expensive purchase, be proactive and inquire as much as you can about the company, customer service and quality of products or services.                                                                   
• Ask questions and request documentation. If you are unsure about a product or service, don’t be afraid to contact the company or salesperson. When in doubt, ask for written documentation to ensure you understand and are being told the truth.
• Read customer reviews. If you are attracted to the price of a product or service, but you feel unsure about the company or legitimacy of the purchase, read customer reviews to see what others experienced.
• Before purchasing a product or service online, make sure the company lists a WORKING telephone number or customer service line.
• Before purchasing a gift certificate, request the terms of the gift certificate in writing to ensure it is redeemable. Beware; if the company goes out of business, it is extremely unlikely the company will refund you for the gift certificate.
• Read the fine print. Make sure you understand the terms of use for the product or service.
• Read the return policy. Make sure you understand whether or not the company will offer you a refund. Call the company to ask what they are willing to offer if you are unsatisfied with the product or service.
• Keep your receipts. It is more likely you will be refunded if you have your receipt on-hand.
• If you are considering purchasing a product or service through websites like Craigslist or Groupon, contact the company directly to ensure the offer is valid. Ask about the company’s return policy. Furthermore, do not invite someone into your home unless you are sure the company or individual is legitimate.
• When in doubt, contact the Tennessee Division of Consumer Affairs at 800-342-8385 or your local Better Business Bureau to ask if complaints have been filed against the company or individual.
   

For more consumer tips, visit www.tn.gov/consumer.

###