America Online once used the business practice of continuing to charge people after they stopped using the online service. Companies that offer free acai berry and reservatrol products are now using a similar business practice. The Better Business Bureau and the Federal Trade Commission have received many complaints about companies that market the popular diet supplement.
Major credit card companies, such as Visa, have had to cancel consumer credit cards because a consumer could not get fraudulent diet supplement companies to stop charging their card. The credit card charges could cost a customer close to $100 per month. The pitch for the supplements goes mentions the free sample and its potential benefits. The advertisements neglect to mention the fine print that a person agrees to when he orders the product. The practices may include extra subscriptions, sending the next supplement before the trial period.
Internet ads sometimes show pictures of Rachael Ray, Oprah Winfrey or other well-known celebrities. The use of the picture is intended to trick the consumer into thinking that the shown celebrity endorses a specific product. Dietary supplement companies are not the only companies who use this type of scam. Work-at-home scams frequently use the same tactics.
The scammers rely on a marketing technique called the negative option. A consumer must opt out of certain items as a condition of the sale. The negative tactic is legal, as long as the vendor discloses the conditions up front. Acai berry scams hide the extra conditions in the small print of the purchasing agreement. The Acai berry companies also make it difficult to contact customer support. A consumer may not be able to stop the charges even if he does get through to someone.
The continued nature of these complaints caught the attention of Visa. The credit company banned 100 companies from using the payment processing services of the company. Visa estimates that one-third of the American population has fallen prey to companies using negative option scams.
A major credit card company preventing the companies continually charging unwanted fees shows how serious the problem of companies using the hidden negative option has become in recent years. The Federal Trade Commission and the Better Business Bureau have also worked on helping consumers avoid the companies that use questionable marketing practices. Until the issue of fraudulent marketing practices can be settled, it is best to read the small print in agreements if you must purchase nutrition supplements online.
Comments on this entry are closed.