BBB Warns of Free Grocery Radio Ads

12/17/2010

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BBB Warns Consumers of Free Grocery Radio Ads

Southfield, MI - Several local consumers have contacted your Better Business Bureau about radio advertisements claiming they could get thousands of dollars in free groceries. Unfortunately, they soon discovered free groceries weren’t in their future.

The ads directed them to call a toll free number, which required them to set up accounts and provide credit card numbers to purchase packages ranging from $13.75 to $20. These packages turned out to be online coupon membership cards.

One consumer who responded to the ad thought he’d be receiving a card to buy $1,000 worth of groceries. He was shocked when he received the online coupon membership card, which looks similar to a credit card, instructing him to log onto a Web site to activate the card. The card says “We clip you save $1,000’s.” According to this consumer, the package wasn’t as advertised by the company over the phone or through the radio ad.

Despite the 100 percent satisfaction guarantee promised in the letter, another consumer tried to cancel by calling the number provided, but the company representative told her it wasn’t the appropriate office to contact. However, the representative couldn’t provide her the correct number to cancel the service.

Based on phone numbers and Web sites provided by these customers, your BBB has found ATS Research, a Maine company, is making the offers. The company currently holds an F rating with your BBB, its lowest rating, for a variety of reasons, including:

113 current complaints filed against the business.

Concerns with the industry in which this business operates.

· Failure to respond to 3 complaints filed against business.

In addition, despite your BBB’s efforts, the company has not responded to requests for company information. Therefore, your BBB as insufficient information about the company’s background and length of operation, which also affects its BBB rating.

The complaints against the company concern advertising, contract, customer service, refund/exchange, sales practice and service issues. Based on BBB files, complaints allege consumers receive offers for $1,000 in free groceries if they provide some basic survey information. The consumer pays a shipping fee to receive the debit card with a $1,000 of cash on it for groceries. It appears the debit card is sent to buy other coupons, not $1,000 in groceries. The fee is to enroll in incentive programs with monthly recurring costs.

If you’re considering an offer like this, your BBB advises you:

Check out companies before providing personal information, such as bank/credit account or Social Security numbers. You can contact your Better Business Bureau at www.bbb.org or calling 248-223-9400.

Be skeptical of promises of 100 percent satisfaction guaranteed. The company might claim this, but the guarantee is only as good as the company offering it.

Be wary of unsolicited telephone calls, e-mails and direct mailings making offers.

Get everything in writing and read the fine print. The fine print is where extra fees and other unexpected charges, including exclusions or conditions, may be hidden.

Be sure to use a credit card for all payments. It’s easier to dispute charges and get your money back.

Be cautious of companies requiring you to sign up for other services to receive the original purchases you wanted to make.

Don’t give into high-pressure sales tactics. Take time to think about the deal and confirm arrangements.

Don’t make a payment until you have all the information you need to make a decision.

About Better Business Bureau
The Better Business Bureau Serving Eastern Michigan is a non-profit organization with the purpose of assisting in the protection of consumers and businesses from fraud and unethical business practices in the local marketplace. In addition to its recognized dispute resolution services, BBB maintains reliability reports on the customer service history of more than 80,000 local businesses and provides consumer education materials on numerous topics. BBB provides its services free to the public and its service territory stretches across Eastern Michigan from Ann Arbor through Metropolitan Detroit, Lansing, Flint, upward to Alpena, and covers the entire Upper Peninsula of the state.

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