Despite frequent warnings to beware of things that appear too good to be true, many of us (who by now really ought to know better) still fall prey to shady characters, con artists and scams. Somehow, the less-than-scrupulous types manage to stay one step ahead of unsuspecting — and too often naïve and gullible — consumers.
Take the controversy over the Snuggie, the wearable, backwards bathrobe-like blanket of infomercial fame that was all the rage during last year’s holiday gift-giving season. The blanket’s maker, Allstar Products Group, apparently shared its customer mailing list with a company called Great Fun. Great Fun used the list to mail $8.25 checks to thousands of Snuggie customers who purchased the blanket over the telephone using a credit card. Some consumers mistakenly thought the unsolicited check was a refund on shipping costs, while others assumed it was some sort of a rebate and happily pocketed the $8.25 as a bonus for their purchase.
According to Allstar Products, the checks were issued as “incentive” for consumers to join Great Fun’s entertainment discount program. Those who cashed the checks likely ignored the language printed on the back, which (when endorsed) authorized the transfer of credit card information to Great Fun. Once the checks were endorsed, unsuspecting consumers found themselves enrolled in a 30-day trial offer for a discount program on shopping, dining and travel. The cost of the annual membership — $149.99 — was conveniently billed to the credit card used to purchase the Snuggie. Worse yet, if the unsuspecting check-casher didn’t call to cancel the service, the membership would automatically renew each year at “the then-current fee.” Although such behavior isn’t illegal, it sure didn’t score many customer-relations points.
It turns out that customers who purchased other infomercial products over the phone, such as Aqua Globe and PedEgg, experienced similar treatment.
The folks at the Better Business Bureau have received thousands of complaints about this and have issued an alert to consumers. While some of the schemes they’re seeing are new, the BBB’s advice continues to be timeless:
— Shop carefully and check out vendors before you buy.
— Pay close attention to your monthly credit card statements and promptly challenge charges for products or services you didn’t purchase.
— Always read the fine print before you sign anything.
Some deals are too good to be true. Knowledge and a dose of healthy skepticism remain the best defense against our own gullibility.
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