Preventing Consumer Scams

Victims of consumer fraud and deception come from all income levels, occupations, age groups and walks of life! There are ways you can avoid becoming a conned consumer or finding yourself ripped off.

As we hear more about deceptive schemes, it's important that consumers be aware, alert and assertive. There is no reason to be unnecessarily fearful or anxious. The important thing to keep in mind is -- know what to watch for and what questions to ask. The majority of salespeople and marketing practices are not deceptive or designed to rip you off. However, a few bad apples in the crate can leave a bad taste in your mouth if you don't know your rights.

Here are some general rules to keep in mind when it comes to various types of consumer fraud:

1. Identify your needs -- don't make impulse decisions. Ask yourself -- Do I have a need for a product or service before I was contacted? What will the product or service do for me?
2. Identify alternatives -- what are your options? For example - Is the item available someplace else for less money? Avoid high-pressure sales tactics where the seller says the sale must be made immediately. Legitimate sellers will give you time to make a decision that's right for you. People who perform a service should also be able to provide you with references that you can verify.
3. Compare alternatives. There is no such thing as a free lunch. Are there minimum standards or protections imposed by state laws or regulations? Calculate the true cost of offers before you make a decision.
4. Before you make a decision, read all the paperwork carefully. Know what you are signing. Keep all the paperwork and receipts for your records. Be sure promises are agreed to by both parties in writing.
5. Know the company's cancellation policy before you agree to buy -- be leery of a company that will not allow you to get a refund if you're not satisfied. Minnesota law does allow for a three-day buyer's right to cancel, but the law only applies to solicitation sales where you buy goods or services in your home, over the telephone or at sales held in motels or auditoriums. Remember the law does not apply to sales conducted at a normal place of business.

Above all, don't let a telephone salesperson fast-talk you into a sale. If the person makes you feel uncomfortable, forget about "Minnesota Nice" -- interrupt, hang up, and don't let them make you feel guilty for not buying or supporting their product or supporting their cause.

For more information on your rights or to check a product or company out, contact the Attorney General's Consumer Assistance Line at 651-296-3353.

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