Fraudulent Telemarketing

Ten Easy Ways to Prevent Fraud:

• Have specific individual(s) responsible for ordering supplies.
• Train all employees who answer the phone.
• Don't give equipment information, like serial numbers, over the phone.
• Do business with known companies or ask for references.
• Issue a written purchase order with authorized signature and purchase order number.
• Instruct supplier to put purchase order number on its invoice and bill of lading.
• Don't pay bills unless they match your documentation.
• Merchandise must conform to bill of lading or refuse it.
• Don't pay for, or return, unordered merchandise.
• Report the incident to the appropriate authorities immediately.

Have you been solicited for office supplies by telephone only then to receive merchandise that was not from your original supplier?

Have you received office supplies at inflated prices or that did not meet your expectations?

Don't be embarrassed! You are not alone. Fraudulent telemarketers are sometimes referred to as "Toner Phoners" or "Paper Pirates." Victims of telemarketing fraud include: local, state and federal government agencies, charitable organizations, family-owned businesses, churches, schools and multi-million dollar corporations. Anyone who answers a phone is a potential victim.

Many legitimate telemarketing companies offer good products at fair prices. Unfortunately, there are many others who are not legitimate. Some fraudulent operations misrepresent the quality, quantity and price of office supplies while posing as an end-user's regular supplier. If you receive goods that were not sent by your regular supplier, do not meet your expectations or are at an inflated price, you should:

(1) Contact BTA:

(2) Contact your regular supplier.

(3) Consult "How to Fight Back Against Fraudulent Telemarketers."

(4) Send a written, documented complaint, along with a copy of the invoice to:

In August 1994, the Telemarketing and Consumer Fraud and Abuse Prevention Act became law. The purpose of the act is to combat the growth of telemarketing fraud by providing law enforcement agencies with powerful new tools and to give consumers new protections and guidance on how to tell the difference between fraudulent and legitimate telemarketing. Under the act, the Federal Trade Commission adopted the Telemarketing Sales Rule, which became effective on Dec. 31, 1995.

Key provisions of the rule require specific disclosures, prohibit misrepresentations, limit times when telemarketers may call consumers, prohibit calls after a consumer requests not to be called, set payment restrictions for the sale of certain goods and services and require that specific business records be kept for two years. Typically, sales by businesses to businesses are not regulated by FTC rules or regulations. The theory is that businesses are more sophisticated than consumers are and thus not likely to become victims.

Over the years, the Business Technology Association has received thousands of complaints from owners of office products regarding the fraudulent and deceptive practices of some vendors of toner and other supplies. As a result, BTA sought the inclusion of nondurable office supplies under the rule. Reputable companies will have no difficulty in complying in regard to their telemarketed sales of nondurable supplies, such as paper, pencils, toner, developer or any product that is depleted and must be replaced. The rule does not apply to software, computer disks, copier/MFPs, computers or any other telemarketed office product or system that can be used over and over again. Most importantly, BTA members are specifically exempt from the record-keeping requirements of the rule. Thus, office automation resellers that telemarket sales of nondurable goods need not create or keep any particular records in order to comply with the rule.

What does the rule require telemarketers to do?

(1) The rule requires telemarketers to disclose material information:

• The identity of the seller
• The purpose of the call is to sell goods or services
• The nature of the goods or services offered
• The cost and quantity of the goods
• A no-refund policy if such exists

(2) A telemarketer may not misrepresent the goods offered:

• State the toner is manufactured by Minolta, for example, when it is not
• State the performance level of the product if it is not based on independent and verifies results

(3) A telemarketer may not:

• Call repeatedly or continuously with the intent to annoy, abuse or harass
• Call someone who has previously requested that he (or she) not be called
• Call any consumer’s residence before 8 a.m. or after 9 p.m. (Be careful of home offices)

Violations of the rule may result in civil penalties of up to $10,000 per violation. In addition, violators may be subject to nationwide injunctions that prohibit certain conduct and may also be required to make refunds to injured customers.

When all is said and done, BTA members should not have to modify their business practices in order to comply with the Telemarketing Sales Rule. Hopefully, only the fraudulent telemarketers will find it necessary to amend their practices and compete honestly and fairly. If you have any questions regarding the rule, please feel free to call the BTA Legal Hotline at (312) 648-2300.

Bob Goldberg

This is a sample letter as a reference for you to work from. You may cut, copy and paste the text into your own document, being sure to customize where indicated.

(Dealer Company Letterhead)
(Date)

(Customer Address)
RE: 'Toner Phoners'

For years, telemarketers have preyed upon unsuspecting consumers by selling office supplies, particularly photocopier toner, over the telephone. In the typical "toner phoner" scam, the salesperson contacts the potential customer, and will often speak to your receptionist or an employee not necessarily familiar with your company's purchasing policies. Many times, the salesperson will represent himself or herself as an employee of (Dealer) in order to gain trust. The salesperson might state that a sale or special promotion is about to end, and if the employee would simply provide the make and serial number of the copier(s), then your company can place an order for toner before the sale or promotion expires. (Optional, if applicable: However, because [Dealer] prefers to maintain good customer relations through direct contact whenever possible, we do not typically sell supplies over the telephone. The very fact that someone is attempting to sell your company toner over the phone should be a tip that the call may not be legitimate.) Particularly when the salesperson purports to be calling from your normal toner supplier, it is easy to understand how an unsuspecting employee might be inclined to oblige without realizing what is truly happening. The salesperson might call again to confirm the order and the proper shipping address. Sometime thereafter, a shipment for toner will arrive with an invoice bearing a price for greater than that which your company normally pays for toner when you buy it from (Dealer).

The purpose of this letter is to make you and your employees aware that "toner phoners" are out there, and they are constantly devising new ways to obtain information about your copiers in order to make a sale. Some of these salespeople will stop at nothing to close a sale or obtain payment for a shipment, making threats and abusive remarks to your employees. Obviously, (Dealer) would never engage in such tactics in order to maintain your valuable business.

Because your satisfaction is our primary concern, we are here to help. If a "toner phoner" ever contacts one of your employees, please contact us right away. You should also contact Business Technology Association at (800) 869-6688, for guidance and advice about reporting any incidents. We are members of BTA, and closely adhere to the organization's foundation of service and integrity to the industry. It is important that you report these incidents to the proper authorities right away so that these fraudulent telemarketers can be stopped.

Please contact us if you have any questions.

Sincerely,
(Dealer)

This letter should be sent to the fraudulent telemarketer via certified mail. A copy should also be sent to BTA, to the Attorney General in your area, and to the Attorney General in the fraudulent telemarketer's area. This is a sample letter as a reference for you to work from. You may cut, copy and paste the text into your own document, being sure to customize where indicated.

Dear ___________________:

I am the purchasing officer for (your company's name). We received (amount) of (toner or developer) from your company. Please be on notice that we are hereby revoking our acceptance of the delivery goods for the following reasons:

(1) Misrepresentation of our normal supplier
(2) Inferior quality of delivered goods
(3) Quantity of delivered goods does not conform to the telephone conversation
(4) The goods were never ordered
(5) The goods were grossly overpriced

We require that you arrange to have the (toner or developer) picked up and returned to your business establishment. We will hold the shipment for pick-up within 30 days after your receipt of this letter. If the goods are not picked up within the time period, we will be forced to dispose of the goods.

Any future correspondence from your company to ours must be in writing. If you have (your company's name) on your records for any future orders, please cancel those orders as none have been made.

Sincerely,
______________________

cc:
BTA General Counsel
300 S. Wacker Dr., Ste. 1500
Chicago, IL 60606

Federal Trade Commission
Attorney General's Office
(address)

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