Chapter 26

Deceptive Sales Practices

Door-to-Door / Telephone

-Keep in mind: most salespeople are honest

-Some use high-pressure tactics, prey on elderly

-FTC gives consumers a “cooling off” period (3 days) when purchasing

something from a D-t-D salesman

-Can cancel contract w/in 3 days

-You should be cautious about telephone solicitations

-FTC and FCC have guidelines for telephone sales

-Can only call between 8am and 9pm

-Once you state you do not want to be called again, it’s illegal for them to call you again

-Computerized voice calls are illegal

-Slamming

-Other rules

-Must state purpose of calls

-Must state TOTAL cost, restrictions

-National Do Not Call Registry

Advertising

-Over $225,000,000,000 is spent each year

-Junk mail, spam

-Freedom of speech, but w/restrictions

-Tobacco

-Health warnings on advertisements

-Corrective advertising

-Seller must admit to deception in past ads

-Puffing

-“World’s best used cars”

-Legal

-Based on seller’s opinion

-Exaggerationàyou should know better

Bait and Switch

-Insincere offer to sell a product on terms almost too good to be true

-Seller has no intention of selling you that item

-Wants to sell you different item at higher cost

-May have very limited “bait” items

-Illegal

Mail-Order

-CD subscription services

-Be careful of the terms

-What to do if broken, not the same item

Internet

-Fraudulent sites

-Check for SSL

-Use reputable sites