Use Caution When Buying Michael Jackson Memorabilia; Value of Items Could Only Be Sentimental

Immediately following the announcement of Michael Jackson’s sudden death, enterprising individuals began selling memorabilia online to take advantage of the increased demand. Better Business Bureau warns that the value of most memorabilia and commemorative items being sold is sentimental and the currently inflated prices for many items will drop over time.

According to Smartmoney, before Jackson’s death, sellers listed an average 200 to 400 memorabilia items daily on eBay, but by the morning following his death almost 20,000 Michael Jackson-related items and memorabilia were for sale on the auction Web site. Items included autographs, gloves, posters, newspapers and even a Cheeto which supposedly predicted the death of the pop star.

In addition to memorabilia, commemorative items are already being mass produced and sold to fans—including t-shirts and special edition newspapers and magazines. Because the value of collectibles is largely dependent on how rare an item is, mass-produced commemorative items are not likely to appreciate in value.

“Collectibles associated with Michael Jackson are selling at a premium right now and most of these items will not increase in value in the future,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Following the death of Princess Diana, the market was flooded with mass-produced items commemorating her death including special edition Beanie Babies that at one time sold for more than $100 but are now on garage sale tables for a buck.”

For fans looking to purchase items to help them remember the King of Pop, BBB offers the following advice:

Get educated.
Collectors should research the value of Michael Jackson-related items before they begin purchasing memorabilia, especially if they are interested in purchasing pieces that have the potential for substantial appreciation in value.

Confirm authenticity.
Confirming the authenticity of memorabilia is rarely easy. Autographs can be verified by a third party, but for other items, the collector should feel free to ask the seller questions about the item, including how the seller came to own it. If the seller can’t answer simple questions, then the collector should walk away.

Make purchases with a credit card.
Consumers should always purchase items with a credit card if they are shopping online. If the seller turns out to be fraudulent, then the consumer can dispute the charge with the credit card company and may be eligible for reimbursement.

Purchase items from a reputable seller.
When shopping online stores, collectors should look for the BBB seal on Web sites and click on the seal to confirm its legitimacy. If there isn’t a BBB seal on the site, shoppers should always check a company out with their BBB before they buy at www.bbb.org.

When purchasing items from an individual on eBay, research the seller’s track record by reading buyer reviews. When shopping on Craigslist, go local and never wire money as payment.

Don’t be fooled by empty advertising claims.
Just because the seller claims that the item is of limited edition, it doesn’t mean that there weren’t millions made. If the item is being widely advertised, chances are, it’s too common to actually gain much value over the years.

For more BBB advice you can trust on shopping safely go to www.bbb.org.

BBB auto warranty tips

Because of recent announcements by Senators Schumer and Warner and the FTC about robo-calling and
major auto manufacturers such as Chrysler and GM are either contending with bankruptcy or fighting off the threat of bankruptcy, there is currently a lot of confusion surrounding the status of auto warranties. BBB is concerned that consumers are particularly susceptible right now to deceptive telemarketing phone calls and other solicitations that seem to be coming from their manufacturer regarding the status of their warranty and would like to offer the following tips:

Better Business Bureaus is warning consumers to be extremely wary of telemarketing calls and mailers, which claim that their auto warranty had or is about to expire. BBB advises that the deceptive solicitations could persuade car owners to purchase an extended auto service contract of questionable value.

BBB has seen a considerable spike in both complaints and inquiries from consumers who state that they received misleading mailers or high-pressure telemarketing calls claiming their auto warranty was about to expire. Complaints against Auto Warranty Processing Services rose by more than 40 percent over the prior year. In 2008, more than 140,000 consumers across the country contacted their BBB to confirm the legitimacy of companies claiming to sell auto warranties.

“As an outgrowth of our country’s economic troubles, and to some extent problems in the auto industry, BBB is hearing from consumers nationwide who are being bombarded by telemarketers and mailers trying to scare them into thinking their auto warranty is about to expire and if they don’t sign-up now the offer expires,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Not only are these telemarketers lying about the consumer’s coverage, they are potentially ignoring federal laws such as the Do-Not-Call registry.”

BBB has received complaints from consumers across North America who were informed that their car warranty was about to expire, when such was not the case, and that they needed to take immediate action in order to avoid a lapse in coverage. BBB research shows that the consumer is actually being sold an extended service contract and despite the impression given, the offer is not associated with the car manufacturer’s warranty.

The value of the various extended service contracts being sold also has been called into question, as many consumers complained that the contract had numerous conditions that might be difficult to meet. For instance, pre-existing conditions often are not covered, proof of maintenance records may be required and restrictions on authorized repair facilities and repair charges must receive prior approval making many of these contracts virtually worthless. Others report difficulty in obtaining refunds.

BBB offers the following advice for dealing with a firm selling extended auto service contracts:

• Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer.

• When considering an extended service contract or any other type of telephone solicitation, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.

• Read your auto manufacturer’s warranty and contact your dealer or manufacturer so that you are not purchasing duplicate coverage.

• Before purchasing extended warranty coverage, consumers should always check the company out first with BBB at www.bbb.org.

• Consumers can place their phone number on the federal do not call list by visiting www.donotcall.gov. If the consumer is already on the list but continues to receive telemarketing calls, he or she can use the same Web site to report the incident to the FTC.

BBB Warns Against a Summer Scam Going Door-to-Door Nationwide

Better Business Bureau warns that deceptive door-to-door magazine sales crews are hitting the pavement and looking to earn a quick buck this summer. In the last 12 months alone, BBB has received 1,100 complaints from consumers in 46 states and the District of Columbia against more than 50 companies that are selling magazines door-to-door.

Many of these companies employ crews of high school and college-age people who are trying to earn money over the summer. These crews are sent to communities to knock on doors and sell magazines—sometimes without appropriate licensing. In the sales pitch, the representative might explain they are working to help get their lives back on track, raising money on behalf of a charity or for a school trip or even selling subscriptions to support troops in Iraq.

“Because sales representatives are typically high school or college-age, victims readily believe the potentially fictitious sales pitch and often pay several hundred dollars for the subscriptions by personal check given directly to the sales reps,” said Kathy Graham, President and CEO of the BBB of Coastal Carolina. “Most complaints against such companies allege that sales reps took their check and the magazines never arrived, however, some complainants also allege being subjected to high-pressure and misleading sales tactics.”

In the last year BBB has received complaints on more than 50 companies conducting door-to-door magazines sales and following are a few examples:

The BBB serving Charlotte has received 286 complaints against two magazine companies owned by the same couple - Trinity Public Relations in N.C. and Seedtime Publications in S.C. Complainants report not receiving the subscriptions they paid for and some allege sales reps used high pressure sales tactics. In one example, a woman called the police after feeling threatened by a sales rep who became angry when she wouldn’t buy a magazine. Some sales reps have also allegedly told prospective customers that they would not be able to eat that day if they didn’t buy their magazines. Trinity Public Relations was closed down by the Attorney General in N.C. and Seedtime Publications has also closed in S.C.

The BBB serving Central, Northern and Western Arizona has received 33 complaints from 12 states regarding Prestige Sales, LLC. In addition to not receiving magazines they paid for, complainants allege sales reps lied about being neighborhood youth who were trying to earn money for a school trip to Europe, while other customers were led to believe they were purchasing magazines subscriptions for troops deployed to Iraq.

Other door-to-door magazine companies with F ratings from BBB include:
• Michigan City, IN-based Omni Horizons Inc., which has received 122 complaints from consumers in 17 states according to the BBB Serving Northern Indiana;
• Chesapeake, VA-based True Visions Inc., which has received 82 complaints from 13 states according to the BBB of Greater Hampton Roads;
• Memphis-based Greater Image, Inc., which has received 71 complaints from 16 states according to the BBB serving the Mid-South; and,
• Seattle-based Fresh Start Opportunities, which has received 66 complaints from seven states according to the BBB serving Alaska, Oregon and Western Washington.

“Experience tells us that customers aren’t the only victims of this scam; the young salespeople are also potentially being taken advantage of by their employers and forced to work long hours, endure substandard living conditions and have their wages withheld from them,” said Graham.

BBB offers the following advice to avoid getting scammed by a door-to-door magazine sales rep:
• Always research the company with your Better Business Bureau for free at www.bbb.org before filling out a check for a magazine subscription.
• The Federal Trade Commission’s Three-Day Cooling-Off Rule gives the customer three days to cancel purchases over $25 that are made in their home or at a location that is not the seller’s permanent place of business. Along with a receipt, salespeople should also include a completed cancellation form that customers can send to the company to cancel the agreement. By law, the company must give customers a refund within 10 days of receiving the cancellation notice.
• Victims of fraudulent magazine sales can file a complaint with their Better Business Bureau at www.bbb.org, local law enforcement, and state Attorney General offices.

For more information about door-to-door magazines sales, reporters can contact Kathy Graham at 843-488-0238.

Scammers are creating their own epidemic of spam e-mails

Relying on reports from online security experts, Better Business Bureau is warning consumers to be on the lookout for fraudulent e-mails and Web sites trying to take advantage of the current swine flu outbreak.

“Scammers read newspapers, watch TV and surf the Internet and they know that by using a hook from the day’s top headlines, that they’ll be able to catch lots of fish,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Right now, issues associated with swine flu and a potential pandemic are of global interest and that means scammers have a very large pond to go phishing in.”

According to McAfee Avert Labs, an online security company, spammers began pumping out e-mails as soon as the first accounts of swine flu were being reported in the news, accounting for two percent of all spam messages. The messages include such subject lines as, “Madonna caught swine flu!” and “Swine flu in Hollywood!” The company reports that the e-mails do not contain malware but often link to online pharmacies.

Another online security company claims that more than 250 Web sites with the term “swine flu” have been registered within the first few days following the announcement of the outbreak and predict that the scams artists are preparing to use such Web sites in a variety of different online scams. One Web site is already selling a “Swine Flu Survival Guide” PDF for $19.95 (www.noswineflu.com )

BBB offers the following advice to avoid swine flu scams:

• Avoid opening e-mail from an unknown source and do not click on any links in the body of the e-mail or open any attachments. Instead, delete the e-mail or report it to the Federal Trade Commission by forwarding the e-mail to spam@uce.gov.

• Don’t believe online offers for vaccinations against swine flu because a vaccine does not exist. For more information on swine flu and updates on progress in fighting the outbreak, go to www.cdc.gov/swineflu

• Make sure your anti-virus and anti-spyware software is up to date and all operating system security patches have been installed. If your computer becomes infected as the result of a spam e-mail about swine flu, you can report it to the Internet Crime Complaint Center at www.ic3.gov.

For more information or to schedule an interview with a BBB spokesperson, contact Kathy Graham at 843-488-0238.

BBB Advice on Purchasing Wedding Insurance; Avoid Being Jilted at the Altar by Bankrupt Vendors

With the number of commercial bankruptcies on the rise, some brides and grooms are getting burned by bankrupt vendors. Because of the weak economy, couples might want to consider wedding insurance and Better Business Bureau is offering advice on purchasing coverage for the big day.

The number of businesses filing for bankruptcy was up 47 percent in February over the previous year. While more well-known company filings like Ritz Camera make the headlines, many smaller, independent businesses are also struggling in the current economy. And BBB has certainly had complaints filed about bridal boutiques and venues that suddenly closed up shop leaving engaged couples in a bind. According to Travelers Insurance, more than 40 percent of all Travelers' wedding insurance claims filed during the past two years involved unforeseen problems with vendors and venues, some of which went bankrupt in the worsening economy.

“Considering that the average wedding costs more than $28,000, soon-to-be newlyweds have a significant amount of money on the line and a vendor’s ‘Going out of Business’ sign can be far worse than rain on their wedding day,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Wedding insurance can provide peace of mind for a couple that their money will be recovered if a vendor or venue falls through at the last minute.”

To illustrate the seriousness of the situation, last summer, the BBB serving Charlotte received a flood of complaints from desperate brides about a local bridal shop, La Bella Sposa, which recently filed bankruptcy after deceiving many of its customers. According to complaints filed by brides, the shop took their money, ordered the dresses, but did not pay the designers, so the dresses never arrived. La Bella Sposa was allegedly taking orders for new dresses, but passed off the floor samples as original dresses. One jilted bride paid the shop more than $10,000 for a gown and 13 bridesmaid dresses, but the shop closed its doors taking her money with it two weeks before her wedding. Another bride was devastated to learn four days before her wedding that, while she thought her dress was undergoing final alterations, the bridal shop had allegedly sold the dress to another bride.

Aside from the gown, wedding insurance can provide a variety of coverage for many mishaps that might affect a wedding including vendor no-shows, foul weather, military deployment, and health issues affecting key participants. Most insurance won’t cover cold feet, however.

BBB offers the following advice on purchasing wedding insurance:
• Always research insurance companies first with BBB by reviewing BBB Reliability Reports free of charge online at www.bbb.org
• Shop for wedding insurance before paying deposits on any wedding services to make sure all expenses are covered.
• Comparison shop and pay close attention to the fine print. According to the Insurance Information Institute, insurance will cost between $125 to $400 depending on the amount of coverage. Like any insurance plan, there are limits on claims and deductibles that must be met.
• Avoid purchasing overlapping coverage. Some vendors might already be insured or coverage might be provided by the credit card company.
• Keep good records and all receipts for the insurance company in order to justify any reimbursements.

For more advice on planning a consumer-savvy wedding, go to www.bbb.org.

Complaints to Better Business Bureau up 7%

According to an annual report released today by Better Business Bureau, consumers filed 891,540 complaints against North American businesses in 2008, reflecting a seven percent increase over the previous year.

“While BBB saw a seven percent increase in complaints, we also experienced a 15 percent increase in requests from consumers for pre-purchase information on the reliability of businesses,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Given the current economic recession, consumers are being more cautious on where and how they spend their money and are looking for objective information that helps them easily and quickly make informed decisions on the reliability of businesses.”

The cell phone industry received the largest number of complaints with 36,710, a nine percent increase over last year. New car dealers ranked second with 27,555 complaints and also saw a nine percent increase. Rounding out the top three, banks received 21,021 complaints, an increase of 15 percent.

While the cell phone industry, new car dealers and banks received a high volume of complaints, the BBB report shows that they also have a higher rate of resolution with consumers than the average rate (73 percent) across all industries in 2008. Cell phone companies resolved 92 percent of complaints, new car dealers resolved 82 percent, and banks resolved 96 percent.

“Industries that do a large volume of business are naturally going to have a larger number of complaints. This is why it’s important to look at how a company responded when BBB approached them with consumer complaints, and not just the sheer number of complaints,” added Graham.

Out of the top ten industries by volume of complaints, used car dealers and banks experienced the most significant increase in complaints over last year. Complaints about used car dealers increased 18 percent and complaints against banks increased by 15 percent. The increase in complaints corresponds with a decline in the amount of trust consumers have in these industries as determined by the BBB/Gallup Trust in Business Index. Released in 2008, the Index survey found that consumer trust in auto dealers and banks had declined considerably from late 2007 into the second quarter of 2008. To find out how other industries fared in the BBB/Gallup Trust in Business Index go to www.bbb.org/trustindex.

Of the top 10 industries for complaints, only two saw a decrease in complaints. Complaints against Internet services decreased by 16 percent and complaints against furniture stores decreased by 3 percent.

For a complete industry breakdown of all complaints filed with the BBB in 2008 go to www.us.bbb.org/statistics. To learn more about BBB dispute resolution services and BBB Reliability ReportsTM, contact Kathy Graham at (843) 488-0238.

BBB Sends Businesses Back to School

n order to help consumers make better-informed decisions on where to spend their hard-earned dollars, Better Business Bureau today announced it will now assign letter grades to local businesses ranging from A+ to F. The letter grade system—which replaces a less-detailed scale of “satisfactory” or “unsatisfactory” — represents BBB’s degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve customer concerns.

Consumers can research the grades of thousands of local businesses by reviewing BBB Reliability Reports™, which are available online and free of charge at www.bbb.org. In addition to noting the business’s letter grade, BBB Reliability Reports™ also include details about integrity and performance, such as the number of complaints a business has received, their response to complaints, and details on any government actions against the business.

BBB’s proprietary ratings formula takes into account 16 weighted factors, using objective information and actual incidences of a business’ behavior that have been verified and evaluated by BBB professionals. Specific issues affecting a business’s rating are described in detail in BBB Reliability Reports™. Ratings factors include:

· The business’s overall complaint history with BBB, including the number and severity of complaints to BBB from customers
· Whether complaints have been resolved in a timely manner or the business has demonstrated a good faith effort to resolve them
· How long the business has been operating and whether it meets appropriate competency licensing
· Government actions against the business related to marketplace activities
· Advertising issues evaluated by BBB
· Whether the business is a BBB Accredited Business and has committed to BBB standards

Rating factors also take into account BBB’s opinion as to whether business models and industries operate in violation of the law, misrepresent products and services, and are likely to generate trade practice concerns and/or have high levels of customer dissatisfaction.

Business Travelers Beware: Free Wi-Fi Scam Strikes at Airports

The Better Business Bureau (BBB) warns that hackers are now taking advantage of this convenience and setting up fake Wi-Fi connections designed to steal your personal information and files without you even knowing.

The BBB offers the following advice on how to keep yourself safe when you go wireless:
Never connect to an unfamiliar ad-hoc network.
Make sure that your computer is not set up to automatically connect to non-preferred networks. Otherwise your computer could automatically connect to the hacker’s network without your knowledge.
Turn off file sharing when you’re on the road to prevent hackers from stealing entire documents, files and unencrypted e-mail from your computer.
Create a Virtual Private Network (VPN) for your business. A VPN establishes a private network across the public network by creating a tunnel between the two endpoints so that nobody in between can intercept the data. Many companies allow remote users to connect to corporate networks as long as they use VPN. This keeps the users' communications just as secure as if they were sitting at a desk in the building.

The BBB is here to help with advice you can trust. For more information on identity theft, fraud prevention, and keeping your company secure online, visit www.bbb.org.