BBB of Greater Houston & South Texas

News Release: For Immediate Release

The Better Business Bureau Serving:
Brazoria, Ft. Bend, Galveston, Harris, Matagorda, Montgomery, & Wharton Counties. (Texas)

Better Business Bureau Tips:
Editorial Ideas From Your Better Business Bureau

Contacts:
Brent Rogers:
Office: 713-341-6122, e-mail: brogers@bbbhou.org

www.bbbhou.org * bbbinfo@bbbhou.org * Council of BBBs: www.bbb.org *
24-Hour Information: 713-868-9500, (800) 275-3626 (from area code 409 only)

Beware of Internet Cramming

If your small business is interested in using the Internet to expand its customer base, be sure you choose a reliable web service. According to the Federal Trade Commission (FTC), some unscrupulous companies, claiming to provide free web design and hosting services, are billing small businesses for services that were never authorized and have little value. The bogus charges usually appear on businesses’ phone bills – an illegal practice known as "cramming" – or on fraudulent invoices.

The scam goes like this: The service provider contacts your business offering a free, 30-day web site. The caller tells you that you can continue the service for a nominal fee of $25 to $30 a month and that you can cancel at any time. Some service providers state that your business will be billed automatically after the 30-day period; others claim you won’t be billed after the 30 days unless you tell them you want to continue the service.

Before or after explaining the offer, the provider asks for basic information about your company: the address, contact person, business hours and a brief description of your business. Your web site is promised to be up and running in about a week, and that you’ll receive a welcome package, which may include a printed copy of the web site, instructions for accessing the site, and a phone number to call to make changes or cancel the service.

These service providers bill your company whether you authorize the services or tell the provider that you want to cancel. And chances are, you will not receive the promised welcome packet, but you will receive a bill – either on your phone bill or as a direct invoice.

The Better Business Bureau and the FTC offer the following tips to avoid losing money to unordered services:

• If you receive bills for services you didn’t order, don’t pay. The law allows you to treat unordered services as a gift.

• Review your phone bills promptly. Be on the lookout for charges for services you haven’t ordered or authorized.

• Assign purchasing to designated staff, and document all your purchases.

• Train your staff in how to respond to telemarketers. Advise employees who are not authorized to order services to say, "I’m not authorized to place orders. If you want to offer or sell us something, you must speak to _______."

• Buy from people you know and trust. Call the BBB at 713-868-9500 or 1-800-275-3626 if you are skeptical of "cold" or unsolicited calls. Don’t succumb to high-pressure sales tactics.

To file a complaint, contact the FTC or your Better Business Bureau. # # #