ASA supports 'scams' awareness drive
15 February 2005
As part of an initiative to spread awareness and increase consumer protection The Advertising Standards Authority (ASA) is supporting a drive to highlight the problem of ‘scam’ advertising. Whether it is a bogus slimming product which promises miracle results or a prize draw mailing offering money for nothing (but doing exactly the opposite), the ASA wants to alert consumers to the way unscrupulous advertisers operate and how they can avoid falling victim to scams.
The Office Of Fair Trading (OFT) is using February 2005 to launch its ‘Scams Awareness Month’. The central idea of this campaign is to make consumers more aware of scams by helping them to recognise scams more easily and so become less likely to fall for them in the first place.
The ASA is getting involved. We have put together some ‘Top Tips’ which identify some of the key things consumers should know to make them more aware and better equipped to avoid scams. Also, we have produced some mini ‘Case Studies’ which focus on some of the more prominent scams from 2004 which highlight the ways in which some unscrupulous advertisers operate.
For further information on ‘Scams Awareness Month’ visit the OFT website: http://www.oft.gov.uk
Scams come in many forms but the end result is always the same - consumers end up out of pocket. This month, the Advertising Standards Authority (ASA) is working with the Office of Fair Trading to help people steer clear of conmen. Follow the tips in our check list below to ensure you avoid falling victim to some of the most common scams.
Too good to be true? It probably is!
An ‘offer’ which seems too good to be true almost certainly will be. Don’t believe letters, emails or text messages telling you you’ve won prize draws or lotteries you haven’t entered for. The promise of a large cash prize may seem tempting, but no-one gives money away for nothing.
Don’t reply to Spam
E-mail scams are rife and many of them come through spam sent out to thousands or even millions of recipients. Unless you think it is from a legitimate company that has made a genuine mistake in mailing you, don't respond to spam e-mail messages. Don't even unsubscribe. Sending a reply, even if it's a request to be taken off a database, may confirm your account is active and may encourage the spammer to send more mail.
Check the box
Before ticking a box to request further information or marketing material, make sure you are aware of how your data will be used and who it may be passed on to. Do not give away information that is private or personal unless you are confident who you are giving it to and how it will be used.
Check the contact details
If advertisers provide you with only minimal contact details, such as a mobile phone number, be sceptical unless you are certain they are a bona fide company. If you order products from them and they do not arrive you may find it very difficult, if not impossible, to track the advertisers down and seek reimbursement.
Vulnerable groups
The most vulnerable people can unwittingly fall victim to scams. Make sure that elderly friends or relatives are aware of how to spot scams and encourage them to throw unwanted mail in the bin.
Premium Rate Numbers
If you receive an unsolicited text asking you to ring a premium rate number for a ‘guaranteed prize’, think before you start to dial. Premium rate numbers begin with 09, and can charge up to £1.50 per minute. If you’re kept hanging on while you try to claim your ‘prize’ the phone call alone could cost more than your ‘prize’ is worth.
Bank Details
Never give out your bank or other financial details to a company you are not sure of. Be wary of providing any information that could give unscrupulous advertisers access to your finances.
Sending Money Up Front
If you receive an unsolicited letter announcing that you’ve won a prize, don’t send money up front as an ‘administration’, ‘processing’ or ‘cheque release’ fee. Many people who fall for advertising scams find out they have been conned only after they have parted with their money. Reputable companies don’t charge for prizes that you have legitimately won.
Register with the MPS
If you want to reduce unsolicited mail contact the Mailing Preference Service. This organisation can have your name removed from unsolicited mailing lists, ensuring that you hear only from companies you’ve asked to contact you.
Text messages
Advertising scams can even find their way onto your mobile phone. The Advertising Standards Authority (ASA) receives many complaints from consumers about misleading promotions that have been sent by SMS message.
A typical scam involves consumers receiving a text message informing them that they have won a prize, which appears to be a large sum of money or a product of high value, and asking them to call a premium rate number to claim. It’s often unclear who sent the text message and the consumer discovers that the ‘prize’ is not what they were led to believe it would be. The cash amount may be substantially lower than advertised or may consist of discount vouchers, or the ‘prize’ product may simply not be available.
Not only has the consumer been misled but they also incur a cost by having to call the premium rate number and this is how the advertiser makes their money. These kinds of text messages are usually unsolicited and consequently in breach of the Advertising Code.
Marketers have to have the explicit consent of the consumer before they can send out promotions by text message. Consumers should be sceptical of unsolicited texts asking them to ring a premium rate number as these can cost up to £1.50 per minute to call.
Slimming claims
Advertisements for slimming products are closely monitored by the ASA. Scam advertising in this area can play on a consumer’s vulnerability and insecurities by making people feel they need to lose weight or by making it sound like it is easy to do so. Watch out for scams promising ‘miracle cures’ or ‘instant results’ - some unscrupulous marketers advertise their products by making an array of unsubstantiated claims about unrealistic rates of weight loss or the efficacy of their product.
For example, the ASA received complaints about a leaflet for herbal weight loss pills which made the claim, “Eat anything you want, chocolate cream cakes, crisps etc and still lose weight.” The advertisement promised an “Average weight loss of 4-5 lbs per week.” This fell foul of the Advertising Code on several counts, not least because the advertisers did not respond to ASA enquiries asking them to substantiate their claims.
Other rogue traders have used similar scam techniques. One advertised a slimming product which claimed to “stimulate the central nervous system by increasing metabolic rate.” Though the advertiser argued that they sold the product as a food supplement they were guilty of making medicinal claims which had not been authorised by the medical authority and which could not be proved. Furthermore, the rate of weight loss they promised was contrary to the accepted medical and nutritional guidelines given to dieters.
Charity
One type of scam that has provoked a flood of complaints from all around the country is the ongoing problem of bogus charities. Consumers have complained to the ASA after finding leaflets dropped through their letterboxes asking them to donate unwanted clothes, footwear and linen. The leaflets ask members of the public to, “Kindly donate” and, “Please help those who really need your support.” They then give details of a collection date and ask people to leave their donations outside.
Such leaflets may appeal to people’s good will, but, in fact, they are produced by commercial companies who collect the donations and sell them on for their own profit.
It is easy to understand why consumers are tricked into falling for this scam. By asking for donations and giving details where the clothes will be sent, the leaflets give the impression that the collection is for charity. The inclusion of a company registration number at the bottom of the leaflet helps to make it look more official.
The operators behind these leaflets are often difficult to trace as they have no fixed business address and the door to door mail drops are hard to police. However, consumers can take one simple step to foil their money making scheme. If you are unsure whether a charity is legitimate you can call the Charity Commission – 0870 333 0123 – who will confirm whether or not they are a registered charity. It’s as easy as that.
Psychics
An advertisement that promises financial well being, a fantastic love life, brilliant career prospects and an end to all life’s problems can be very tempting to believe in. However when a psychic or a spiritual healer is claiming ‘guaranteed’ results, their advertising can end up misleading the most vulnerable.
The ASA has received complaints about various misleading advertisements from psychics or spiritual healers which make bold statements ranging from, “I am prepared to guarantee that you will receive an enormous amount of money” to “I will break curses and protect you.” Guarantees can never be substantiated and testimonials from ‘satisfied’ clients can be as unreliable as the promises contained within the ad.
Other letters and mailings from psychics threaten bad luck for recipients unless they send money for a spell or a device to reverse the effects. This approach is both threatening and offensive and preys directly on people’s insecurities and superstitions.
Consumers should be aware of psychics who make claims that guarantee monetary gain, sexual fulfilment or the eradication of problems. Invariably they will want your money to make this happen, and when it doesn’t you’re likely to remain out of pocket.
Prize Draws/ lottery mailings
Money for nothing. Thousands of prize draw mailings that go through consumer’s letterboxes promise exactly that. But when you’re asked to pay for the privilege of receiving your prize, be wary of how you respond.
Mailings that ask you to pay an up front ‘administration’ fee, ‘processing’ fee or ‘cheque release’ fee to process your prize, or which involve ringing a premium rate number and giving out personal details may cost you more than you end up ‘winning’.
Nor does the problem lie solely with mailings from the UK. Increasingly, scams that originate from abroad are finding their way into our homes. ‘El Gordo Sweepstake Lottery’ are serial offenders who have bombarded the UK with their mailing. Based in Spain, they send consumers notification that they have won a considerable cash prize and provide instructions on how to claim. The claims procedure involves contacting a number in Spain and filling out a form giving personal details such as bank account number, sort code and address. Suffice to say this is one big scam which has left consumers with, at best, a hefty phone bill.
The problem is not just European based. A Canadian marketer called ‘Savant Promotions Ltd’ has breached the Advertising Code with their mailing that claims that the recipient is “Guaranteed £10,000”. All the consumer has to do is fill out the “Official Cash Claim Confirmation” and agree to pay an upfront fee of £9.97 in order to receive the money. The fact that the “guaranteed” winner only has a 1: 1,500,000 chance of winning is neatly inserted into the small print at the back of the mailing.
Consumers who receive an unsolicited prize draw mailing that asks them to pay up front to claim should be highly sceptical. But the advertisers will only make money if you reply. The best place for this kind of material is the bin.
Useful Links:
www.oft.gov.uk
www.mpsonline.org.uk