04/20/2009
Your local Better Business
Bureau of the Southwest (BBBSW) is advising social networkers to read the fine
print when responding to ads on Facebook or other social networking sites
because the large print does not always tell the whole story. Ubiquitous ads for weight loss products,
work-at-home opportunities and offers for "free" computers can cost shoppers
more than they bargained for in the end.
According to Nielsen Online,
social networking sites were more popular than e-mail in 2008. Facebook"s 108.3 million members spent 20.5
billion minutes on the site last year alone. Advertisers are going where
the people are and eMarketer estimates that $1.3 billion will be spent on
social networking advertising in 2009.
"People need to use extreme
caution and read the fine print before handing over their credit card
information to an online advertiser. Just
because an ad appears on a website they trust, it doesn't mean they can always
trust the advertisers," said Steve Cox, BBB spokesperson. "One of the big red flags we're seeing is ads
that link to blog platforms designed to look like a personal testimonial from a
satisfied customer. In our experience,
if an ad takes you to a blog, it's best to hit the back button immediately."
Following are just a few
examples of common ads on social networking sites and what the fine print
reveals:
The Pitch: Lose 4 Dress Sizes
In January, the BBBSW issued a warning to consumers about online ads and websites
that use Oprah's name to sell acai berry supplements as weight-loss miracles. Despite the warning, these ads are still
common on Facebook and MySpace and link to fake blogs such as
www.jennyloseweight.com that are designed to look like testimonials of women
who lost weight on the acai supplements. Recent research by the Center for Science in the Public Interest
identified more than 75 different phony blogs that led to websites touting acai
berry supplements as a weight loss miracle.
The Fine Print: The phony blogs link to websites
that offer a free trial of an acai supplement, and while the customer may think
they only have to pay shipping, they could get billed as much as $87.13 every
month if they do not cancel before the trial period ends. The fine print also explains that the trial
period begins from the moment the customer orders the supplements and not after
they receive the shipment.
BBBSW Warns: Not only do health experts question
the legitimacy of the weight loss claims linked to the acai berry, nationwide,
the BBB has received thousands of complaints from consumers against such acai
supplement companies because many were billed despite never receiving their
free trial or were billed every month despite numerous attempts to
cancel.
The Pitch: Learn How I Make $67,000 a
Year Being a Stay-at-Home Mom!
Many ads on Facebook advertise ways to make easy money from home. Similar to the acai berry ads, the ads link
to blogs that were supposedly created by people who made money through a
work-at-home program. One such blog
written by a "Sarah Roberts" claims that she added "$67,000 a year to my
family's income working 10 hours a week (that’s over $128 an hour!)" by
creating websites that host Google ads. Another, "www.jasongetsrich.com", is ostensibly written
by the newly married Jason who makes "around $5,500 to $7,000 a month from
Google".
The Fine Print: The blogs direct readers to websites
for programs such as Internet Money Machine and Easy Google Cash where they can
sign up for a seven-day trial access to information on how to make money from
home. While the free trial supposedly
only costs $1.95-$2.95, the individual will be charged $69.90 every month if
they do not cancel seven days from signing up. The fine print also states that
the company does not give refunds.
BBBSW Warns: Use extreme caution when signing up
for a work-at-home job or moneymaking opportunity online. In 2008 alone, the BBB nationwide received
more than 3,500 complaints from people who signed up for offers to learn how to
work from home but were ultimately disappointed. Job hunters should also be aware that while some work-at-home
opportunities have the word "Google" in their name and use Google's logo on
their websites, they are not actually affiliated with Google.
The Pitch: Get
a Free Purple [Red, Pink, Green, Black,] MacBook.
Also common on Facebook are ads to get a free MacBook Air claiming that the
company is seeking laptop testers. The
ads lead to an incentive-marketing program at www.colormyrewards.com where
participants must sign up for various products and services in order to earn
their free laptop.
The Fine Print: Customers must complete two options
from each of the three tiers, Top, Prime and Premium before receiving their
"free" MacBook. Example offers listed
in the Top and Prime tiers include signing up for credit cards or trial offers
for subscription services such as for vitamin supplements or DVD rental
services. In some cases, the
participant will need to pay for shipping, and if they are not vigilant about
canceling the trial offers they signed up for, they will begin being billed
every month.
Examples of the Premium
offers listed on the website that must be met in order to get the MacBook are
much more expensive and include paying as much as $1,500 for furniture or
purchasing a travel package with a minimum value of $899.00 per person.
BBB Warns: Incentive programs can be extremely
costly in the long run and the fine print shows that the customer might have to
pay a significant amount of money in order to get their "free" items. It is also a red flag that Apple does not
even make MacBook Air in purple, red, pink, or green.
"Of course, not all ads on
social networking sites are misleading and misleading ads aren't confined to
Facebook or MySpace. The point though,
is that it's important that people always read the fine print carefully before
giving their credit card information online," added Cox.
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