Florida Consumer E-Newsletter - June 2008
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
Fraudulent telemarketing operations cost consumers billions of dollars annually. As the state’s leading consumer protection agency, the Florida Department of Agriculture and Consumer Services is committed to reversing this alarming trend. In conjunction with the Florida Attorney General’s Office, the Department led a major sweep of telemarketing “boiler rooms” during the months of March and April in five Florida counties which resulted in 12 arrests and more than $126,000 in reimbursements.
These enforcement actions were part of “Operation Tele-PHONEY”, the largest telemarketing fraud sweep ever conducted by the Federal Trade Commission (FTC). Last month the FTC and its partners also unveiled a new consumer education campaign entitled “Who’s Calling?” which includes a website and two videos. Actively investigating fraudulent telemarketers and implementing quality consumer education and outreach programs make up the 1-2 punch that the Florida Department of Agriculture and Consumer Services uses to deter these industrious con artists.
Sincerely,
What’s Cooking in a “Boiler Room”?
Fraudulent telemarketers usually conduct their business in large leased or rented spaces with a multitude of desks, phones, and fast talking salesmen who are well versed in the art of separating consumers from their money. If fraud is suspected and an investigation begins putting pressure on the owner, he has the autonomy to quickly shut the operation down, change the business name, and move to another location, thus covering his/her tracks.
Who Do They Target and How?
Although elderly consumers tend to be disproportionately targeted, anyone who has a phone is a potential victim. The method of attack that consumers are most familiar with is “cold calling”, where the scammer gets your number from a telephone directory, a mailing list or a “sucker list” (lists that are bought and sold containing key information on people who have responded to previous telemarketing solicitations). Direct mailing is another method that has become increasingly effective, as well as broadcast and print advertisements. Both of these approaches actually involve the victim calling the telemarketer because they were intrigued by the offer they saw and would like more information. The offers may involve foreign lotteries, “free” or “low cost” vacations, investment opportunities, prizes, or even recovery schemes where the consumer has already fallen victim to one of these offers, only to have someone call and promise to get the money back.
Who Do The Telemarketers Have To Answer To?
All non-exempt telemarketing companies must be licensed with the Florida Department of Agriculture and Consumer Services (FDACS) and post a security bond of no less than $50,000 prior to soliciting. In addition, each individual salesperson with the company must also be licensed. The Florida Telemarketing Act mandates this licensing process and governs the actions of these businesses. Here are a few requirements set forth by this statute that consumers should be aware of:
- Telemarketing calls can only be made between the hours of 8:00 am and 9:00 pm. and within the first 30 seconds of the phone call, the salesperson shall state his or her true name, the company that he or she is representing, and the goods or services being sold.
- If a sale or agreement to purchase is completed, the consumer must be informed of his or her cancellation rights, the FDACS license # of both the business and the salesperson, as well as the street address of the business.
- The disclosures previously mentioned shall be made in a clear and intelligible manner.
- The business or salesperson cannot require that payment be made by credit card or state that this is their preferred method of payment.
Avoid Becoming A Victim!
When dealing with telemarketers keep these tips in mind:
- Don’t provide any personal or financial information over the phone and don’t be pressured into making an immediate decision.
- Don’t send cash by messenger or overnight mail. Using a credit card will allow you to dispute the charges if you don’t get what you were promised.
- Register for the Florida Do Not Call Program by calling 1-800-HELP-FLA (435-7352) or visiting our website at www.800helpfla.com.
Report telemarketing scams!!
File a consumer complaint with the Department of Agriculture and Consumer Services by calling or going to our website as mentioned above. Fraudulent telemarketers should also be reported to the Florida Attorney General and the Federal Trade Commission (FTC).
Remember, we are here for you. Our Consumer Hotline, calling with- in Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352- 9832), will answer any consumer related questions you may have or direct you to the best resource for assistance.
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Florida Do Not Call Program
The Florida Department of Agriculture and Consumer Services maintains the State's "Do Not Call" list. Florida residents who do not wish to receive sales calls may have their residential, mobile or paging device telephone number included on this list.
Federal Trade Commission (FTC)
This site includes facts for consumer and links to different sites pertaining to telemarketing fraud.
Federal Bureau of Investigation (FBI)
When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud.
