Gumdrops, lollypops and candy canes shot their final volley in the 2011 battle of the bulge this holiday season, and now the weight loss gimmicks, fads and remedies are crawling out of their trenches and preparing their assault. Better Business Bureau of Southern Arizona cautions consumers to research weight loss products and companies carefully and understand contracts completely — including terms of cancellation — before giving any personal information or making any purchases.

In 2011, BBB received more than 920 complaints nationwide against weight control services, more than 600 complaints against gyms and more than 3,150 complaints against health and diet food stores. Consumers have complained about deceptive advertising, ineffective products and confusing or misleading contracts.

In addition, the Federal Trade Commission has taken action against companies making unsubstantiated medical claims and using deceptive advertising tactics.

“It didn’t do that much for me, to be honest with you,” Texas consumer, Patrice Owens, said about a product she purchased online. “I just wanted my money back and I didn’t want to deal with them anymore.”

Owens was looking to find an appetite suppressor to help her lose weight when she came across a free trial offer. That “free” trial came with an agreement that allowed the company to charge her $90 per month to send additional product. She said she later found that disclosure on the website, but it was not prominent and took some digging. When she called the company to cancel, she was refused a full refund.

“They agreed to give me back $30 of my $90,” she said. “I looked on the website for an address to write them a letter. (There was) no address or anything on their website, so I had to go through the Better Business Bureau to find out where they were.”

BBB received hundreds of complaints last year about “free trial” offers coming with undisclosed or difficult to understand caveats. Most consumers say the company signed them up for a monthly service without clear notification, or made it difficult to cancel and obtain a refund when the consumer was unhappy with the product.

In addition to enrolling her in a monthly program without her consent, Texas resident, Susan Kwasniak, said one company sent her additional products she had not requested and failed to include any instructions on how to use its appetite suppressor.

“When I looked it up on websites, I found a lot of people selling this and they have guides online,” she said. “It’s actually a 500-a-day calorie diet. They never told me that on the phone, and I got that on a competitor’s website, not from them.”

The product — a homeopathic version of the prescription hormone chorionic gonadatropin, also called (more…)

Last month, the Federal Trade Commission (FTC) filed an action against online marketer, Jesse Willms, who allegedly made over $450 million from consumers worldwide. His companies allegedly lured consumers using “free” or “risk-free” offers and then charged them for products or services they did not agree to.

“The defendants used the lure of a “free” offer to open an illegal pipeline to consumers’ credit card and bank account,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Free must really mean free, no matter where the offer is made.”

Willms’ various online endeavors- Alberta Ltd, Just Think Media, Dazzle White, eDirectSoftware, Farend Services Ltd and Wuyi Source- generated large volumes of complaints in a short period of time, which prompted the BBB to review Willms’ companies files for a pattern of complaints.

A complaint pattern remained consistent for his companies, so BBB contacted the appropriate outside agencies (the Competition Bureau in Canada and the FTC in the U.S.) for help. The FTC asked BBB for information concerning the companies, their affiliates, as well as their complaint history.

Since 2008, BBB has processed over 4,000 complaints against the companies. Consumers told BBB they were unaware of monthly charges, had difficulties receiving refunds or never received the products. BBB serving Central and Northern Alberta and BBB serving Los Angeles worked with these consumers and the company to try and resolve any concerns.

In addition to Willms, the FTC also named Brett Callister, Peter Graver, Adam Sechrist and Carey Milne as defendants. 

The action claims that Willms and his various companies used deceptive marketing tactics by offering “free” trials of teeth whitening, acai berry and weight loss supplements. These offers stated consumers would only pay shipping and handling, but they ended up paying monthly subscriptions fees they were unaware of.

Willms also operated a penny auction website. Consumers believe they would receive bonus bids for joining the site However, consumers who provided credit card or banking information were charged $150, recurring monthly fees and bid fees for using the service. Whether or not a consumer won an auction, they were still required to pay for any bids.

“BBB’s goal is to create marketplace trust,” said Kim States, BBB President. “Consumers should be able to trust what they’re reading without looking for the catch.”

To help consumers avoid being lured by trial offers, BBB advises consumers to do the following:

• Read all terms and conditions. Review the information to determine exactly what you’re paying for and how much it will cost. Also, discover any return or exchange and cancellation policies prior to purchase.
• Read your credit card statements. You’ll know right away if you’re being charged for something you didn’t agree to.
• Research the company. Visit www.tucson.bbb.org or search online to see what others are saying about the company, its products and its services.

For more information please visit www.tucson.bbb.org, or call Better Business Bureau of Southern Arizona at (520)888-5353.

Consumers who tried to take advantage of “free” Internet offers for smokeless cigarettes say they were burned by unexpected charges that totaled $100 or more, Better Business Bureau warns.

Customers from 44 states have filed more than 360 complaints against Direct E-Cig of Naples, Fla., and London, England, in the last year, including at least one Tucson consumer.

Direct E-Cig has an “F” grade with BBB, the lowest grade possible.

Kim States, BBB president, said Direct E-Cig failed to answer 170 of the complaints.

“The complaints point to a significant and ongoing pattern of problems with Direct E-Cig,” she said. “In most cases, consumers say they ordered what they thought was a free starter kit, only to find out later that the company billed their credit cards for $100, $200, or more.

On its website, Direct E-Cig calls its product “a revolutionary electronic smoking device designed as a great smoking alternative to traditional tobacco cigarettes.” The site says smokers can smoke “virtually anywhere, without the flame, ash, tar or carbon monoxide.”

Direct E-Cig is among several distributors of smokeless cigarettes. Other companies also offer free or discounted starter kits and then bill customers for the full price or enroll them in an ongoing program to receive cartridge refills and other products.

In response to some of the complaints, Direct E-Cig told BBB  its website notes that consumers must go through a cancellation process within 15 days “to avoid being billed the full price of the kit of $109.95 and future monthly shipments.”  Several consumers said they received direct email solicitations from the company and never saw the cancellation policy.

Even if consumers are dissatisfied with the product and follow the return policy exactly, it appears that the so-called free trial offer will end up costing them money. The website notes that Direct E-Cig charges $7.50 for each opened or missing cartridge and a $10 restocking fee on all returns.

In March, Arizona Attorney General, Tom Horne, filed suit against Smoke Freely, LLC, an Arizona company that sells electronic cigarettes. Defendants in the suit claim Smoke Freely misrepresented their “Risk Free Trial” when marketing the product.

BBB offers the following advice for consumers who are considering taking advantage of free or low-cost trial offers for smokeless cigarettes or other products:

• Be very cautious of committing to trial offers, especially when you are asked to supply credit card information. Often, these offers require you to pay the full price for the product or automatically enroll you in an ongoing program as soon as the trial period is over.
• Consumers often report difficulty canceling their agreements, even if they try to follow all requirements.
• Understand that, in some cases, these companies can supply your contact information to other businesses.

Check out BBB Business Reviews by going to www.tucson.bbb.org or by calling (520)888-5353.