In response to our recent series of articles about Education-related scams, an honored educator suggests that we take a long look at traditional education practices. Perhaps there are better approaches.
What Is Wrong With Education?
Generation after generation of human beings are educated by those who came before. It is how knowledge and survival skills get passed down to maintain continuity of knowledge. Every system of education has its benefits, and its pitfalls. There are those who are well served, and those who fall between the cracks and are lost, sometimes to society itself.
So what is the best way to educate? To know that, we must know what education is. Until we have a working definition, how can we determine how to do it, and judge whether or not we are doing it well?
Education means different things to different people. To some, particularly those who are of religious bent, education is merely indoctrination into the catechisms of a particular faith. It is no accident that, for so long, the only literate people was of the clergy. As knowledge increased and made changes to the way we live our lives, it became imperative that knowledge and skill sets not be lost. Knowledge was passed from master to apprentice, from professional to intern. In this manner, knowledge and skills have been passed from generation to generation, guaranteeing the perpetuity of human knowledge.
Of course, nowadays, we have the greatest repository of knowledge history has known since the Library of Alexandria. It’s called the Internet, and it is loaded with everything you might want to know (as well as some things you probably didn’t want to know). Now that knowledge has been deposited in such a manner, the skills needed these days include the parsing of information to weed out that which is useless for a purpose or just downright false. A basic fund of knowledge in all kinds of subject areas is required for survival in our society. So how do we give that knowledge and development of critical thinking skills?
Schools.
A school is a building where education ostensibly takes place. In the course of a school day, children are shuttled from room to room, from teacher to teacher, to be filled up with knowledge like buckets with water. The classroom might or might not have appropriate resources, the teacher might or might not be familiar with how to make the best use of those resources. There might or might not be enough money in the budget from year to year that the people in the community might or might not vote through for use in obtaining the necessary resources.
The students might or might not have had a good night’s sleep, a place to sleep, or a place to do their work undisturbed. The administration might or might not be concerned with education over what is their usual main concern…maintaining a positive image of the school within the community, no matter what that takes or how big a rug is needed to sweep things under. It is the favorite whipping boy of the community members who are anti-tax, and the funding of schools is inequitable and unsustainable in the extreme.
The students are subjected to standardized testing from year to year to assess…what? Their growth? Their knowledge? Their application of knowledge? Their teacher’s ability to teach to a standardized test? The students are subjected to a one-size-fits-all curriculum (which might or might not be more individualized and differentiated by teachers) and the goal of education is always given as a vague, indefinable “it will prepare you for college/adulthood/etc.”
First, not all students are going to be going to college, and that should not be our goal. Some of our students are going to be going into trades, and our current BOCES system (vocational training in New York), while good, does not go nearly far enough. Apprenticeships need to be brought back. You learn by DOING, and those who learn with their hands are always going to be frustrated in a traditional school setting. There are also lots of children who will be going on to more artistic pursuits, and the resources are seldom available for them to realize these dreams unless parents have great walloping scads of cash available to send their tots off to an appropriate private institution.
Also falling between the cracks are the truly gifted children, those who excel in an academic environment. So much in the way of time and resources are used to address discipline issues and just get the kids to shut up so that a class can take place, that the bright student quickly gets bored and shuts down. Honors classes help, but when honors classes are opened to anyone, and pressure is brought to bear to make sure everyone succeeds, once again the time, effort and resources are weighted towards the lower end. High school used to be stratified, but the “one-size-fits-all” mentality that pervades public education at the present time frowns at “tracking” students into levels of ability, fearing that it will stigmatize those who are in the “lower” track. Meanwhile, those in the “higher” track are made to pay the price.
What is wrong with education? Pretty much everything.
Unless we as a society start to glamorize intelligence and real achievement based on making a positive and material contribution to society instead of glamorizing people on “reality” TV shows, we will never make education attractive enough for our young folks to buy into. Until we get those who learn with their hands out of formal schools and into apprenticeships, where they can finally be free, until we treat our best and brightest students AS our best and brightest students, we can never have real progress in education.
Education must be student-centered, not school-centered, teacher-centered or administrator-centered. Once we recognize that, maybe we can work on fixing the problem.
Wednesday, December 23, 2009
Tuesday, December 15, 2009
‘Tis the Never-Ending Season
(Consumer Safety & Awareness article: Part 44)
Guest Editorial from
Nancy Dickerson, Slightly Creaky Active Living Columnist.
Teachers once taught that a year held four seasons: spring, summer, fall or autumn, and winter. Now certain parts of the country probably had to use a great deal of imagination to divide the days of sunshine from sunshine, but maybe the oranges grew riper during one season or something of that nature. At any rate, children knew fall approached when Halloween and Thanksgiving dominated their art work at school. And finally the winter season had confirmation in pictures of snowflakes and snowmen made of Styrofoam or other art supplies.
Today seasons have completely changed, and the change has absolutely nothing to do with global warming or even political correctness. If spring is now welcomed with a picture of a cardinal, the bird is plainly decorating a baseball uniform. Fall, of course, is welcomed with the bright red bird on a football uniform. In some strange manner the seasons have gone from falling leaves and snowflakes to failing drug tests, breaking bats, and an entire battalion of assorted creatures which somehow have come to represent team spirit and aggressiveness. Who knew that a dolphin could be so dangerous? Or that a cardinal could be induced to tear someone’s head off or stomp on another player?
This change in the seasons has not restricted itself to one nation; indeed, some nations have divided themselves along national sports boundaries. Soccer games or some other event can ignite riots and a national emergency. Stampeding fans and stadiums that are ill-equipped for the enthusiasm of sports fans have been responsible for deaths in many countries.
Finally, from these changes have come new heroes—the national champion sports stars. Strength, agility, precision, and natural athletic abilities bring admiration beyond belief to men and women who become national symbols. Those men and women receive remuneration many times higher than many other well-known individuals.
But the wealth and fame come with a price. Just as the flashy cardinal is instantly recognizable, so too are many famous sports figures. Unfortunately, notoriety quickly follows the loss of anonymity when these men and women lack the morals or character of true heroes. Thus has developed the latest seasonal game: disparagement of the intrepid dissolute. Will teachers soon be teaching children how to draw and use a megaphone?
Guest Editorial from
Nancy Dickerson, Slightly Creaky Active Living Columnist.
Teachers once taught that a year held four seasons: spring, summer, fall or autumn, and winter. Now certain parts of the country probably had to use a great deal of imagination to divide the days of sunshine from sunshine, but maybe the oranges grew riper during one season or something of that nature. At any rate, children knew fall approached when Halloween and Thanksgiving dominated their art work at school. And finally the winter season had confirmation in pictures of snowflakes and snowmen made of Styrofoam or other art supplies.
Today seasons have completely changed, and the change has absolutely nothing to do with global warming or even political correctness. If spring is now welcomed with a picture of a cardinal, the bird is plainly decorating a baseball uniform. Fall, of course, is welcomed with the bright red bird on a football uniform. In some strange manner the seasons have gone from falling leaves and snowflakes to failing drug tests, breaking bats, and an entire battalion of assorted creatures which somehow have come to represent team spirit and aggressiveness. Who knew that a dolphin could be so dangerous? Or that a cardinal could be induced to tear someone’s head off or stomp on another player?
This change in the seasons has not restricted itself to one nation; indeed, some nations have divided themselves along national sports boundaries. Soccer games or some other event can ignite riots and a national emergency. Stampeding fans and stadiums that are ill-equipped for the enthusiasm of sports fans have been responsible for deaths in many countries.
Finally, from these changes have come new heroes—the national champion sports stars. Strength, agility, precision, and natural athletic abilities bring admiration beyond belief to men and women who become national symbols. Those men and women receive remuneration many times higher than many other well-known individuals.
But the wealth and fame come with a price. Just as the flashy cardinal is instantly recognizable, so too are many famous sports figures. Unfortunately, notoriety quickly follows the loss of anonymity when these men and women lack the morals or character of true heroes. Thus has developed the latest seasonal game: disparagement of the intrepid dissolute. Will teachers soon be teaching children how to draw and use a megaphone?
Monday, December 7, 2009
Education Scams (Part 5)
(Consumer Safety & Awareness article: Part 43)
(Continued from two weeks ago.)
Previously we looked at Pennco Tech, a school in New Jersey and Pennsylvania that, according to many who reviewed it on the Internet, does not live up to their promises.
ITT, a highly advertised technical correspondence school, also has a huge amount of complaints listed against it. Here is one from a former ITT instructor. “The school is a scam that preys on stupid, uneducated people for the $40,000 federal student loans that they obtain. The books are a joke, the curriculum is written for morons, and the credits don't transfer.”
There is a list of litigation taken against ITT including, “ITT Educational Services, which operates ITT Technical Institute across the country, agreed to pay $725,000 to settle an investigation by the California attorney general’s office. The investigation found that the school improperly calculated students’ grade-point averages in order to facilitate students’ collection of financial aid from the state. It was launched as a result of numerous allegations from former employees and instructors.”
Here is another of the many complaints against them: “It's amazing how easy it is to make money in America. America used to be the land of the free. Now-a- days, it's the land of the free to be exploited. ITT Tech is a prime example of this. Their scam? Let virtually anyone in, and charge top dollar for an education that is comparatively worthless. ITT is just like the sub-prime mortgage lenders of recent years. Their prey is exactly the same. Both promise our less qualified citizens a heretofore unavailable piece of the American dream – a home or a college education -- and then they break that promise with educational standards that are too low or mortgage payments too high. And the end result is virtually the same – a lot of debt and nothing to show for it, except a wealthier corporation. Well, at least until the house of cards come crashing down.”
Associated Content.com has this: “According to the Department of Labor, Information Technology careers occupy four of the five fastest growing occupations in the United States with phenomenal growth foreseen over the next seven to ten years. In response to this, a huge industry has sprung up to provide training to people who want to ride the wave of ITT success. The advertisements are slick, moving and very enticing. Testimonials from actual students talking about how attending this or that technical school changed their lives, saving them from a life of laying roofing shingles or flipping burgers. Sometimes there will be large ads in the local paper about how people with the right certifications can make 50, 60 or even 70 thousand dollars per year.”
For a person who may have gotten off track after leaving high school or an older person who is forced to start a new career, these opportunities appear very appealing and the ads make it look quick and simple. In a matter of a few months, a person can make the leap from manual labor to working in an exciting and rewarding career in the Information Technology industry. The reality is something different.
When a student signs up for a technical school among the first things they will be asked about is financing. The cost of completing all of the courses is generally between $9,000 and $15,000 depending on the school. The student will be asked to fill out forms to request a career loan from one of several providers.
It is important for the student to realize that these are not "student loans" and they are not government backed, although some of the schools may intimate that they are. The student is responsible for the full amount of the loan whether the courses are completed or not. Repayment of these loans is under a special set of rules that allow for minimum monthly payments for the first year and then higher monthly payments for a period of eleven to fifteen years.
The trap in these loans is that unlike normal student loans, the money is often paid by the lender to the school, not to the borrower. In many cases the school receives all of the money up front before the student ever sets foot in a classroom. If the student drops out or fails to complete for any reason, the school usually keeps the money and the loan must still be repaid by the borrower.
I could go on, as there are many more similar complaints. The point is simple: Community Colleges are the best option for those interested in a technical education. There are some good schools out there, but none have the reasonable tuition, the guarantee that the teachers are qualified, and the quality classes offered that the state’s two-year schools offer.
(Continued from two weeks ago.)
Previously we looked at Pennco Tech, a school in New Jersey and Pennsylvania that, according to many who reviewed it on the Internet, does not live up to their promises.
ITT, a highly advertised technical correspondence school, also has a huge amount of complaints listed against it. Here is one from a former ITT instructor. “The school is a scam that preys on stupid, uneducated people for the $40,000 federal student loans that they obtain. The books are a joke, the curriculum is written for morons, and the credits don't transfer.”
There is a list of litigation taken against ITT including, “ITT Educational Services, which operates ITT Technical Institute across the country, agreed to pay $725,000 to settle an investigation by the California attorney general’s office. The investigation found that the school improperly calculated students’ grade-point averages in order to facilitate students’ collection of financial aid from the state. It was launched as a result of numerous allegations from former employees and instructors.”
Here is another of the many complaints against them: “It's amazing how easy it is to make money in America. America used to be the land of the free. Now-a- days, it's the land of the free to be exploited. ITT Tech is a prime example of this. Their scam? Let virtually anyone in, and charge top dollar for an education that is comparatively worthless. ITT is just like the sub-prime mortgage lenders of recent years. Their prey is exactly the same. Both promise our less qualified citizens a heretofore unavailable piece of the American dream – a home or a college education -- and then they break that promise with educational standards that are too low or mortgage payments too high. And the end result is virtually the same – a lot of debt and nothing to show for it, except a wealthier corporation. Well, at least until the house of cards come crashing down.”
Associated Content.com has this: “According to the Department of Labor, Information Technology careers occupy four of the five fastest growing occupations in the United States with phenomenal growth foreseen over the next seven to ten years. In response to this, a huge industry has sprung up to provide training to people who want to ride the wave of ITT success. The advertisements are slick, moving and very enticing. Testimonials from actual students talking about how attending this or that technical school changed their lives, saving them from a life of laying roofing shingles or flipping burgers. Sometimes there will be large ads in the local paper about how people with the right certifications can make 50, 60 or even 70 thousand dollars per year.”
For a person who may have gotten off track after leaving high school or an older person who is forced to start a new career, these opportunities appear very appealing and the ads make it look quick and simple. In a matter of a few months, a person can make the leap from manual labor to working in an exciting and rewarding career in the Information Technology industry. The reality is something different.
When a student signs up for a technical school among the first things they will be asked about is financing. The cost of completing all of the courses is generally between $9,000 and $15,000 depending on the school. The student will be asked to fill out forms to request a career loan from one of several providers.
It is important for the student to realize that these are not "student loans" and they are not government backed, although some of the schools may intimate that they are. The student is responsible for the full amount of the loan whether the courses are completed or not. Repayment of these loans is under a special set of rules that allow for minimum monthly payments for the first year and then higher monthly payments for a period of eleven to fifteen years.
The trap in these loans is that unlike normal student loans, the money is often paid by the lender to the school, not to the borrower. In many cases the school receives all of the money up front before the student ever sets foot in a classroom. If the student drops out or fails to complete for any reason, the school usually keeps the money and the loan must still be repaid by the borrower.
I could go on, as there are many more similar complaints. The point is simple: Community Colleges are the best option for those interested in a technical education. There are some good schools out there, but none have the reasonable tuition, the guarantee that the teachers are qualified, and the quality classes offered that the state’s two-year schools offer.
Thursday, November 26, 2009
Black Friday Starts the Largest Consumer Rip-Off Season
‘Tis the season for giving and for being thankful. And every store in the country is being thankful for the tricks they have learned to use to rip us off. We’re simply going to list some examples.
1. The most popular independent grocery store in the community is noted for its fresh produce, fish, and meat. Four days before Thanksgiving, knowing that customers anticipate their relatively stable and moderate prices and outstanding quality, they raise prices and put out “Sale” tags through the store.
a) Iceberg lettuce had been selling for 89 cents to $1.29 – today’s special was $1.99
b) Romaine was also 89 cents last week. This week it’s $2.99.
c) The most they sold broccoli crowns for during the last year was $1.39 a pound. For this week’s special it’s “on Sale” at $1.69.
There were more than 200 similar examples throughout the store.
2. “Discount” outlet malls bring out the big guns, listing mark-downs of over 50%. Look carefully – all the price tags are new. The brand-name handbag that was selling for $50 for the last three months now has an “Originally sold at $199” or “Compare at $249” and has been marked down to only $89.
3. Sticking with outlet malls…. Many of the products sold there are manufactured specifically for the outlets. They may have the same brand names and styles, but may also be poorly made, seconds, or worse. Yet the prices are, in many cases, the same or just slightly lower than what you would pay for the high-quality merchandise at a department store.
4. You’ll even see signs for “Up to 90% off.” That means items can be anywhere from no discount to 90% and you can bet that most of the stuff is priced for profit. Going through a major department store’s Black Friday ad, we compared the prices with their weekly ads for the last month: not one item was lower and most was at normal retail or slightly higher.
5. Stores tend to spend the week before Thanksgiving repricing their products upwards from 10 to 50%. Then, when they discount them 30 to 50% you may be paying even more than before they went on sale. Weekly sales during the year are almost always better buys than the prices between Thanksgiving and Christmas.
We have spent the last 40 weeks discussing tricks merchants use to trick people. Just to summarize:
1. Shop around. Even when items are marked with such terms as on sale, at the lowest price of the year, or deep discount, you probably can get it for less elsewhere. Compare store ads with the prices at Amazon.com. (And Amazon usually ships for free.)
2. When you see signs that offer great deals, do not be fooled. ‘Tis the season to be skeptical.
3. Avoid gift cards. Read back through past blogs on this site for an explanation as to why. They are almost always money losers.
4. Read the return and refund policies. Some stores give only 3 or 5 days and demand a receipt be included even for exchanges. On occasion items marked as “discounted,” even if they really are not, may not be returned or exchanged.
Some advanced thinking now can save you from the post-holiday credit card bill blues.
1. The most popular independent grocery store in the community is noted for its fresh produce, fish, and meat. Four days before Thanksgiving, knowing that customers anticipate their relatively stable and moderate prices and outstanding quality, they raise prices and put out “Sale” tags through the store.
a) Iceberg lettuce had been selling for 89 cents to $1.29 – today’s special was $1.99
b) Romaine was also 89 cents last week. This week it’s $2.99.
c) The most they sold broccoli crowns for during the last year was $1.39 a pound. For this week’s special it’s “on Sale” at $1.69.
There were more than 200 similar examples throughout the store.
2. “Discount” outlet malls bring out the big guns, listing mark-downs of over 50%. Look carefully – all the price tags are new. The brand-name handbag that was selling for $50 for the last three months now has an “Originally sold at $199” or “Compare at $249” and has been marked down to only $89.
3. Sticking with outlet malls…. Many of the products sold there are manufactured specifically for the outlets. They may have the same brand names and styles, but may also be poorly made, seconds, or worse. Yet the prices are, in many cases, the same or just slightly lower than what you would pay for the high-quality merchandise at a department store.
4. You’ll even see signs for “Up to 90% off.” That means items can be anywhere from no discount to 90% and you can bet that most of the stuff is priced for profit. Going through a major department store’s Black Friday ad, we compared the prices with their weekly ads for the last month: not one item was lower and most was at normal retail or slightly higher.
5. Stores tend to spend the week before Thanksgiving repricing their products upwards from 10 to 50%. Then, when they discount them 30 to 50% you may be paying even more than before they went on sale. Weekly sales during the year are almost always better buys than the prices between Thanksgiving and Christmas.
We have spent the last 40 weeks discussing tricks merchants use to trick people. Just to summarize:
1. Shop around. Even when items are marked with such terms as on sale, at the lowest price of the year, or deep discount, you probably can get it for less elsewhere. Compare store ads with the prices at Amazon.com. (And Amazon usually ships for free.)
2. When you see signs that offer great deals, do not be fooled. ‘Tis the season to be skeptical.
3. Avoid gift cards. Read back through past blogs on this site for an explanation as to why. They are almost always money losers.
4. Read the return and refund policies. Some stores give only 3 or 5 days and demand a receipt be included even for exchanges. On occasion items marked as “discounted,” even if they really are not, may not be returned or exchanged.
Some advanced thinking now can save you from the post-holiday credit card bill blues.
Wednesday, November 18, 2009
Education Scams (Part 4)
(Consumer Safety & Awareness article: Part 41)
Learn at Home & Tech Schools
Many high school students, lacking the grades or the interest to go on to college, seek to get technical training. With a long history of advertising, on matchbooks, in pulp magazines, and now on the Internet, hundreds of companies provide technical training for such people. Scammers, seeing financial gain, have moved in.
Pennco Tech is a good example. Pennco Tech is an actual school, located in Bristol Pennsylvania, with a satellite unit in Blackewood New Jersey. If you go to their web site you will find, “You have goals for your future. Strong ideas about what you want to do, and how you want to live. The problem is that the steps to achieve these goals aren't always clear. Pennco Tech helps you bridge the gap between dreams and reality. We work with you to formulate a solid plan, and then give you the training and employer connections you need to accomplish that plan.”
Sounds good? Yet why do we see things like this posted on the Internet? “Pennco Tech guarantees they will help you find a job. That’s all a sales pitch to get you into their “programs". I am over $10,000.00 in dept for the student loan that I cannot pay back! They will leave you with nothing. Don’t let your fate be the same.”
Here are some more complaints about this school:
“I earned an Associates Degree, which I believe is invalid because the degree has the Bristol, Pennsylvania campus on it. I only was there for the last two weeks of the 18 months I attended. When I asked Pennco Tech why was this, I was informed because the Blackwood, New Jersey campus was not an accredited school and they cannot legally give degrees. I received a diploma also at that time, which had the Blackwood campus on it. The course had to take place the last two weeks in Bristol to make the degree ‘good'. I paid 18 months for a two-week degree.”
“Licensed teachers did not teach the courses that were taught. When we traveled to Bristol the same teachers were sent to teach us. Now there is a case of unlicensed teachers teaching in an accredited school.”
“The course taught outdated computer languages that no one is using.”
“I was just informed by Pennco Tech when I called to get the figures that I paid that the Computer Programming course that I studied was discontinued a few years back due to poor job placement for perspective employees in that field.”
“I am writing this letter to report a fraudulent misrepresentation made by Pennco Tech in Blackwood, NJ. Senior Admissions Representative Karl Mancuso "Guaranteed" lifetime job placements for the Heating, Air Conditioning, Ventilation, and Refrigeration (HVAC) class with a starting salary of $15-28 dollars an hour. He also said if I had good attendance, kept good grades, and participated in class my chance of earning the highest salary of $28 an hour would be more likely.”
“After speaking with Donna, the Career counselor, we were told there are NO jobs for ANY class in the salary range quoted to us by Mr. Mancuso. The actual starting salary is only $9.50 an hour. With a slim possibility, Donna may be able to find me a job paying up to $13. She said she had never heard of an entry-level position paying as high as $28 an hour. Donna also stated that because of equal opportunity employment, everyone’s resume must be sent to prospective employers, not just the people in the top of the class. Everyone must be given the same employment options for every paying job available.”
“I believed at the signing of my enrollment contract with Pennco Tech that I would be earning a full time starting salary of over $20 dollars an hour. I would have never given up my $14 dollar an hour plus commission position, take out $15,000 (plus interest) in student loans, and sacrificed my families (we have 3 kids) future for a job only paying $9.50 an hour. We were lied to and taken advantage of and I would like the school, and Mr. Karl Mancuso held firmly responsible! We relied on him to factually represent Pennco Tech, and it was his lies that we put our future on the line for and enrolled with this school” (Grammar errors in the original maintained.)
More on this topic next week.
Learn at Home & Tech Schools
Many high school students, lacking the grades or the interest to go on to college, seek to get technical training. With a long history of advertising, on matchbooks, in pulp magazines, and now on the Internet, hundreds of companies provide technical training for such people. Scammers, seeing financial gain, have moved in.
Pennco Tech is a good example. Pennco Tech is an actual school, located in Bristol Pennsylvania, with a satellite unit in Blackewood New Jersey. If you go to their web site you will find, “You have goals for your future. Strong ideas about what you want to do, and how you want to live. The problem is that the steps to achieve these goals aren't always clear. Pennco Tech helps you bridge the gap between dreams and reality. We work with you to formulate a solid plan, and then give you the training and employer connections you need to accomplish that plan.”
Sounds good? Yet why do we see things like this posted on the Internet? “Pennco Tech guarantees they will help you find a job. That’s all a sales pitch to get you into their “programs". I am over $10,000.00 in dept for the student loan that I cannot pay back! They will leave you with nothing. Don’t let your fate be the same.”
Here are some more complaints about this school:
“I earned an Associates Degree, which I believe is invalid because the degree has the Bristol, Pennsylvania campus on it. I only was there for the last two weeks of the 18 months I attended. When I asked Pennco Tech why was this, I was informed because the Blackwood, New Jersey campus was not an accredited school and they cannot legally give degrees. I received a diploma also at that time, which had the Blackwood campus on it. The course had to take place the last two weeks in Bristol to make the degree ‘good'. I paid 18 months for a two-week degree.”
“Licensed teachers did not teach the courses that were taught. When we traveled to Bristol the same teachers were sent to teach us. Now there is a case of unlicensed teachers teaching in an accredited school.”
“The course taught outdated computer languages that no one is using.”
“I was just informed by Pennco Tech when I called to get the figures that I paid that the Computer Programming course that I studied was discontinued a few years back due to poor job placement for perspective employees in that field.”
“I am writing this letter to report a fraudulent misrepresentation made by Pennco Tech in Blackwood, NJ. Senior Admissions Representative Karl Mancuso "Guaranteed" lifetime job placements for the Heating, Air Conditioning, Ventilation, and Refrigeration (HVAC) class with a starting salary of $15-28 dollars an hour. He also said if I had good attendance, kept good grades, and participated in class my chance of earning the highest salary of $28 an hour would be more likely.”
“After speaking with Donna, the Career counselor, we were told there are NO jobs for ANY class in the salary range quoted to us by Mr. Mancuso. The actual starting salary is only $9.50 an hour. With a slim possibility, Donna may be able to find me a job paying up to $13. She said she had never heard of an entry-level position paying as high as $28 an hour. Donna also stated that because of equal opportunity employment, everyone’s resume must be sent to prospective employers, not just the people in the top of the class. Everyone must be given the same employment options for every paying job available.”
“I believed at the signing of my enrollment contract with Pennco Tech that I would be earning a full time starting salary of over $20 dollars an hour. I would have never given up my $14 dollar an hour plus commission position, take out $15,000 (plus interest) in student loans, and sacrificed my families (we have 3 kids) future for a job only paying $9.50 an hour. We were lied to and taken advantage of and I would like the school, and Mr. Karl Mancuso held firmly responsible! We relied on him to factually represent Pennco Tech, and it was his lies that we put our future on the line for and enrolled with this school” (Grammar errors in the original maintained.)
More on this topic next week.
Monday, November 2, 2009
Education Scams (Part 3)
(Consumer Safety & Awareness article: Part 40)
When money is needed and people are desperate, scammers move in. Phony scholarships are not common, but high interest and misleading loans for education can ruin a person’s economic future.
Scholarships.com reports, “Scholarship scams are so common that one could easily think they’re a new form of art. Don’t allow yourself to be duped by a scholarship scam artist; you’ll end up spending valuable time and unnecessary amounts of money for absolutely nothing. Luckily, these scams are fairly easy to avoid as long as you recognize the warning signs.”
The U.S. Department of Education suggests, “If you’re searching the Internet for scholarships and visit a site that asks for your credit card or another form of payment before it’ll help you find funding, you might want to keep searching. Similarly, if you or your parents are contacted by an unfamiliar organization that invites you to an “interview” or “seminar” about preparing and paying for college, do your homework. Ask your high school counselor or a college financial aid administrator whether they’ve heard of the organization and know whether it’s legitimate. In many cases, such invitations are a way to get you and your parents to come listen to a sales pitch. The company wants you to pay for advice on scholarships and other funding that you can get free elsewhere.”
FinAid.com, a legitimate financial aid information center, has reports of these types of scams:
1. Scholarships that Never Materialize. Many scams encourage you to send them money up front, but provide little or nothing in exchange. Usually victims write off the expense, thinking that they simply didn't win the scholarship.
2. Scholarships for Profit. This scam looks just like a real scholarship program, but requires an application fee. The typical scam receives 5,000 to 10,000 applications and charges fees of $5 to $35. These scams can afford to pay out a $1,000 scholarship or two and still pocket a hefty profit, if they happen to award any scholarships at all. Your odds of winning a scholarship from such scams are less than your chances of striking it rich in the lottery.
3. The Advance-Fee Loan. This scam offers you an unusually low-interest educational loan, with the requirement that you pay a fee before you receive the loan. When you pay the money, the promised loan never materializes. Real educational loans deduct the fees from the disbursement check. They never require an up-front fee when you submit the application. If the loan is not issued by a bank or other recognized lender, it is probably a scam. Show the offer to your local bank manager to get their advice
4. The Scholarship Prize. This scam tells you that you've won a college scholarship worth thousands of dollars, but requires that you pay a "disbursement" or "redemption" fee or the taxes before they can release your prize. If someone says you've won a prize and you don't remember entering the contest or submitting an application, be suspicious.
5. 419 Scam Scholarship. In a variation of other scams we have seen, some prize scholarship schemes can get you into deep trouble. The sponsor sends the student a check for the scholarship, but requires the recipient to send back a check or cash for the taxes or some other fees. Or the sponsor sends a check for more than the scholarship amount and asks the recipient to send back a check or cash for the difference. The scholarship check ultimately bounces, as it is a forgery, but by then the recipient’s funds are long gone.
6. The Guaranteed Scholarship Search Services. Beware of scholarship matching services that guarantee you'll win a scholarship or they'll refund your money. They may simply pocket your money and disappear, or if they do send you a report of matching scholarships, you'll find it extremely difficult to qualify for a refund.
7. Investment Required for Federal Loans. Insurance companies and brokerage firms sometimes offer free financial aid seminars that are actually sales pitches for insurance, annuity and investment products. When a sales pitch implies that purchasing such a product is a prerequisite to receiving federal student aid, it violates federal regulations and state insurance laws.
8. Free Seminars. You may receive a letter advertising a free financial aid seminar or "interviews" for financial assistance. Sometimes the seminars do provide some useful information, but often they are cleverly disguised sales pitches for financial aid consulting services (e.g., maximize your eligibility for financial aid), investment products, scholarship matching services and overpriced student loans.
The College Board reports on a number of different scams:
9. Our scholarship is guaranteed or your money back. No one can guarantee that they'll get your child a grant or a scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing—before you or your child pays
10. You can't get this information anywhere else. There are many free lists of scholarships available. You and your child should start researching scholarships at the high school or library before you decide to pay someone to do the work for you.
11. Need Your Financial Information. “I just need your credit card or bank account number to hold this scholarship.” No one should give out a credit card or bank account number on the phone without getting information in writing first. It may be a set-up for an unauthorized withdrawal from your account.
12. We'll do all the work. Don't be fooled. There's no way around it. Your child must apply for scholarships or grants himself.
13. The scholarship will cost money. Don't pay anyone who claims to be "holding" a scholarship or grant for your child. Free money shouldn't cost a thing.
14. You've been selected by a national foundation to receive a scholarship, or - You're a finalist, in a contest you never entered. Before you or your child sends money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
Fraudulent scholarships can take many forms; some of the most common types have been presented here. If you receive an offer that uses one of these tactics, be suspicious. If you believe the offer is a scam, report it. Sometimes a scam persists for years before people catch on to it. Even when people realize they've been cheated, few file a complaint.
When money is needed and people are desperate, scammers move in. Phony scholarships are not common, but high interest and misleading loans for education can ruin a person’s economic future.
Scholarships.com reports, “Scholarship scams are so common that one could easily think they’re a new form of art. Don’t allow yourself to be duped by a scholarship scam artist; you’ll end up spending valuable time and unnecessary amounts of money for absolutely nothing. Luckily, these scams are fairly easy to avoid as long as you recognize the warning signs.”
The U.S. Department of Education suggests, “If you’re searching the Internet for scholarships and visit a site that asks for your credit card or another form of payment before it’ll help you find funding, you might want to keep searching. Similarly, if you or your parents are contacted by an unfamiliar organization that invites you to an “interview” or “seminar” about preparing and paying for college, do your homework. Ask your high school counselor or a college financial aid administrator whether they’ve heard of the organization and know whether it’s legitimate. In many cases, such invitations are a way to get you and your parents to come listen to a sales pitch. The company wants you to pay for advice on scholarships and other funding that you can get free elsewhere.”
FinAid.com, a legitimate financial aid information center, has reports of these types of scams:
1. Scholarships that Never Materialize. Many scams encourage you to send them money up front, but provide little or nothing in exchange. Usually victims write off the expense, thinking that they simply didn't win the scholarship.
2. Scholarships for Profit. This scam looks just like a real scholarship program, but requires an application fee. The typical scam receives 5,000 to 10,000 applications and charges fees of $5 to $35. These scams can afford to pay out a $1,000 scholarship or two and still pocket a hefty profit, if they happen to award any scholarships at all. Your odds of winning a scholarship from such scams are less than your chances of striking it rich in the lottery.
3. The Advance-Fee Loan. This scam offers you an unusually low-interest educational loan, with the requirement that you pay a fee before you receive the loan. When you pay the money, the promised loan never materializes. Real educational loans deduct the fees from the disbursement check. They never require an up-front fee when you submit the application. If the loan is not issued by a bank or other recognized lender, it is probably a scam. Show the offer to your local bank manager to get their advice
4. The Scholarship Prize. This scam tells you that you've won a college scholarship worth thousands of dollars, but requires that you pay a "disbursement" or "redemption" fee or the taxes before they can release your prize. If someone says you've won a prize and you don't remember entering the contest or submitting an application, be suspicious.
5. 419 Scam Scholarship. In a variation of other scams we have seen, some prize scholarship schemes can get you into deep trouble. The sponsor sends the student a check for the scholarship, but requires the recipient to send back a check or cash for the taxes or some other fees. Or the sponsor sends a check for more than the scholarship amount and asks the recipient to send back a check or cash for the difference. The scholarship check ultimately bounces, as it is a forgery, but by then the recipient’s funds are long gone.
6. The Guaranteed Scholarship Search Services. Beware of scholarship matching services that guarantee you'll win a scholarship or they'll refund your money. They may simply pocket your money and disappear, or if they do send you a report of matching scholarships, you'll find it extremely difficult to qualify for a refund.
7. Investment Required for Federal Loans. Insurance companies and brokerage firms sometimes offer free financial aid seminars that are actually sales pitches for insurance, annuity and investment products. When a sales pitch implies that purchasing such a product is a prerequisite to receiving federal student aid, it violates federal regulations and state insurance laws.
8. Free Seminars. You may receive a letter advertising a free financial aid seminar or "interviews" for financial assistance. Sometimes the seminars do provide some useful information, but often they are cleverly disguised sales pitches for financial aid consulting services (e.g., maximize your eligibility for financial aid), investment products, scholarship matching services and overpriced student loans.
The College Board reports on a number of different scams:
9. Our scholarship is guaranteed or your money back. No one can guarantee that they'll get your child a grant or a scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing—before you or your child pays
10. You can't get this information anywhere else. There are many free lists of scholarships available. You and your child should start researching scholarships at the high school or library before you decide to pay someone to do the work for you.
11. Need Your Financial Information. “I just need your credit card or bank account number to hold this scholarship.” No one should give out a credit card or bank account number on the phone without getting information in writing first. It may be a set-up for an unauthorized withdrawal from your account.
12. We'll do all the work. Don't be fooled. There's no way around it. Your child must apply for scholarships or grants himself.
13. The scholarship will cost money. Don't pay anyone who claims to be "holding" a scholarship or grant for your child. Free money shouldn't cost a thing.
14. You've been selected by a national foundation to receive a scholarship, or - You're a finalist, in a contest you never entered. Before you or your child sends money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
Fraudulent scholarships can take many forms; some of the most common types have been presented here. If you receive an offer that uses one of these tactics, be suspicious. If you believe the offer is a scam, report it. Sometimes a scam persists for years before people catch on to it. Even when people realize they've been cheated, few file a complaint.
Monday, October 26, 2009
Education Scams (Phony Degrees, Part 2)
(Consumer Safety & Awareness article: Part 39)
Phony or purchased degrees are far more pervasive than most people think. They usually make the headlines only when a medical practitioner or educator is revealed to have no true degree.
BlogingStocks.com interviewed Barry Minkow, whose company, ZZZZ Best (pronounced "Zee Best") appeared to be an immensely successful carpet-cleaning company but collapsed in 1987, costing investors an estimated $100 million. He was convicted of fraud and several other offenses and sentenced to 25 years in prison, but served only seven years, getting a probationary release from prison in 1995. The interview in part stated:
“Minkow released the names of seven public company executives caught lying about their degrees. The former head of the fraud known as ZZZZ Best Carpet Cleaning has been working hard to verify the credentials of 358 public company executives and directors. The names put through the ringer were generally in industries he suspected were filled with "hype." Upon identifying executives whose degrees weren't listed in a large database of college graduates, schools were contacted directly to verify if the executives earned degrees or not.
”I've been investigating corporate fraud for over a decade, and have generally found that when there's a small fraud being committed by an upper-level executive, chances are greater there's a much larger fraud being perpetrated at the same time. My evidence is only anecdotal, but I've become a believer based on what I've witnessed -- that small frauds are often only the tip of the iceberg when it comes to wrongdoing by upper management.”
A search on the internet for doctors, dentists, and other professionals who, after obtaining jobs using offshore college degrees and eventually causing injury of death due to their lack of proper education turns up over 140,000 hits.
Burleson Consulting, a major computer assistance company, has seen hundreds of people applying for positions in their own company with false or improper degrees, and thousands in corporations they have assisted. They report that, “Verifying a college degree is especially problematic for foreigners, some of whom count on the Human Resource department’s inability to speak a foreign tongue. Many HR departments automatically discard resumes with foreign degrees because some diploma mills set-up a fake registrar’s office to verify graduation from phantom schools.”
The FTC has found that, “Diploma mills may claim to be “accredited.” Colleges and universities accredited by legitimate organizations undergo a rigorous review of the quality of their educational programs. Although many diploma mills claim to be “accredited,” their accreditation is from a bogus, but official-sounding agency that they themselves created.”
They recommend that you look out for sound-alike names. Some diploma mills take on names that are very similar to well-known colleges or universities. A “dot edu” Web address is no guarantee of legitimacy, either. Keep in mind that some diploma mills use credible-sounding foreign names. Researching the legitimacy of a foreign school can be a challenge, but is clearly worth the time. If you’re having a tough time checking out a particular school, call the registrar of a local college or university and ask if it would accept transfer credits from the school you are considering.”
You can use the Internet to check if a school is accredited by a legitimate organization at the database of accredited academic institutions posted by the U.S. Department of Education at www.ope.ed.gov/accreditation
You can also easily spot a phony school through these signs:
No Studies, No Exams — Get a Degree for Your Experience. Diploma mills grant degrees for “work or life experience” alone. Accredited colleges may give a few credits for specific experience pertinent to a degree program, but not an entire degree.
No Attendance. Legitimate colleges or universities, including online schools, require substantial course work.
Flat Fee. Many diploma mills charge on a per-degree basis. Legitimate colleges charge by the credit, course, or semester, not a flat fee for an entire degree.
No Waiting. Operations that guarantee a degree in a few days, weeks, or even months aren’t legitimate. If an ad promises that you can earn a degree very quickly, it’s probably a diploma mill.
Click Here To Order Now! Some diploma mills push themselves through aggressive sales tactics. Accredited colleges don’t use spam or high-pressure telemarketing to market themselves. Some diploma mills also advertise in newspapers, magazines, and on the Web.
If the school caught your attention through an unsolicited email or pop-up ad, it may be a diploma mill. Legitimate institutions, including distance learning programs, won’t advertise through spam or pop-ups.
Phony or purchased degrees are far more pervasive than most people think. They usually make the headlines only when a medical practitioner or educator is revealed to have no true degree.
BlogingStocks.com interviewed Barry Minkow, whose company, ZZZZ Best (pronounced "Zee Best") appeared to be an immensely successful carpet-cleaning company but collapsed in 1987, costing investors an estimated $100 million. He was convicted of fraud and several other offenses and sentenced to 25 years in prison, but served only seven years, getting a probationary release from prison in 1995. The interview in part stated:
“Minkow released the names of seven public company executives caught lying about their degrees. The former head of the fraud known as ZZZZ Best Carpet Cleaning has been working hard to verify the credentials of 358 public company executives and directors. The names put through the ringer were generally in industries he suspected were filled with "hype." Upon identifying executives whose degrees weren't listed in a large database of college graduates, schools were contacted directly to verify if the executives earned degrees or not.
”I've been investigating corporate fraud for over a decade, and have generally found that when there's a small fraud being committed by an upper-level executive, chances are greater there's a much larger fraud being perpetrated at the same time. My evidence is only anecdotal, but I've become a believer based on what I've witnessed -- that small frauds are often only the tip of the iceberg when it comes to wrongdoing by upper management.”
A search on the internet for doctors, dentists, and other professionals who, after obtaining jobs using offshore college degrees and eventually causing injury of death due to their lack of proper education turns up over 140,000 hits.
Burleson Consulting, a major computer assistance company, has seen hundreds of people applying for positions in their own company with false or improper degrees, and thousands in corporations they have assisted. They report that, “Verifying a college degree is especially problematic for foreigners, some of whom count on the Human Resource department’s inability to speak a foreign tongue. Many HR departments automatically discard resumes with foreign degrees because some diploma mills set-up a fake registrar’s office to verify graduation from phantom schools.”
The FTC has found that, “Diploma mills may claim to be “accredited.” Colleges and universities accredited by legitimate organizations undergo a rigorous review of the quality of their educational programs. Although many diploma mills claim to be “accredited,” their accreditation is from a bogus, but official-sounding agency that they themselves created.”
They recommend that you look out for sound-alike names. Some diploma mills take on names that are very similar to well-known colleges or universities. A “dot edu” Web address is no guarantee of legitimacy, either. Keep in mind that some diploma mills use credible-sounding foreign names. Researching the legitimacy of a foreign school can be a challenge, but is clearly worth the time. If you’re having a tough time checking out a particular school, call the registrar of a local college or university and ask if it would accept transfer credits from the school you are considering.”
You can use the Internet to check if a school is accredited by a legitimate organization at the database of accredited academic institutions posted by the U.S. Department of Education at www.ope.ed.gov/accreditation
You can also easily spot a phony school through these signs:
No Studies, No Exams — Get a Degree for Your Experience. Diploma mills grant degrees for “work or life experience” alone. Accredited colleges may give a few credits for specific experience pertinent to a degree program, but not an entire degree.
No Attendance. Legitimate colleges or universities, including online schools, require substantial course work.
Flat Fee. Many diploma mills charge on a per-degree basis. Legitimate colleges charge by the credit, course, or semester, not a flat fee for an entire degree.
No Waiting. Operations that guarantee a degree in a few days, weeks, or even months aren’t legitimate. If an ad promises that you can earn a degree very quickly, it’s probably a diploma mill.
Click Here To Order Now! Some diploma mills push themselves through aggressive sales tactics. Accredited colleges don’t use spam or high-pressure telemarketing to market themselves. Some diploma mills also advertise in newspapers, magazines, and on the Web.
If the school caught your attention through an unsolicited email or pop-up ad, it may be a diploma mill. Legitimate institutions, including distance learning programs, won’t advertise through spam or pop-ups.
Monday, October 19, 2009
Education Scams (Part 1 – Phony Degrees, Part 1)
(Consumer Safety & Awareness article: Part 38)
One of the most important things young people can do to improve their lives is to get a good education. Unfortunately, scammers know this and build a variety of frauds to deceptively get money from people who are trying to improve themselves. Thus we get educational scams.
The Nation, a highly respected magazine, presented this information in 2004: “When large amounts of cash and the entrepreneurial spirit intersect with an institution as impoverished and trusting as schools, it's not long before financial scandal strikes. That time is now here.”
These scandals involve construction shortcuts and kickbacks, diverted funds, outright theft, and all the white-collar crimes we associate with Enron, the financial institutes, and other industries. In 2008, in a school in New Jersey that was being constructed, the contractors took so many short cuts and used such substandard material that the building was a disaster waiting to happen. In fact, it was such a horror story that the building had to be totally renovated at a cost considerably higher than the original estimate. Although several people did go to jail, the renovations, the trial and related expenses were all footed by the local taxpayers. The building may not open until 2012.
I once had the honor of working for a man who was proud to display his Doctor of Divinity degree. As I got to know him, during a five-month relationship, he proved over-and-over that his corrupt business methods, his desire to cut corners, and eventually the scam he was perpetrating, showed he was as phony as his degree. He had paid several hundred dollars to purchase it online.
The FTC warns, “Are you ever tempted by an email or an ad claiming you can “earn a college degree based...on life experience”? Don’t be, say attorneys for the Federal Trade Commission, America’s consumer protection agency. “Chances are good that the ad is for a ‘diploma mill,’ a company that offers ‘degrees’ or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.”
Most employers and educational institutions consider it lying if you claim academic credentials that you didn't earn through actual course work. Federal officials say it’s risky behavior: If you use a so-called “degree” from a diploma mill to apply for a job or promotion, you risk not getting hired, getting fired, and in some cases, prosecution.”
Taking it a step further, USA Today has this story in 2003: “After Marion Kolitwenzew learned her daughter was diabetic, she took her in 1999 to a specialist for care. He seemed impressive, with an office full of medical supplies and a slew of medical degrees from universities. It turns out those diplomas came from degree mills, which are bogus universities that confer degrees for little or no study. When the mother followed his advice and took her daughter off insulin, the 8-year-old girl began vomiting and died.”
“The North Carolina man who treated her, Laurence Perry, is serving up to 15 months in jail for manslaughter and practicing medicine without a license. But questionable degrees aren't just being used by bogus doctors.”
“Employees armed with academic credentials from diploma mills have held jobs as sex-abuse counselors, college vice presidents, child psychologists, athletic coaches and engineers. While some employees simply falsify their résumés and make up degrees, others turn to diploma mills. These bogus colleges and universities make it easier to pull off the résumé charade because they provide fake diplomas and transcripts that often seem legitimate.”
USA Today discovered, “There are more than 400 diploma mills and 300 counterfeit diploma Web sites, and business is thriving amid a lackluster economy — doubling in the past five years to more than $500 million annually, according to estimates. Some fake schools in Europe have made as much as $50 million a year and have as many as 15,000 "graduates" a year. The number of fake accrediting organizations set up by con artists to provide diploma mills an air of legitimacy has swelled from half a dozen 10 years ago to 260 in 2003.”
Alan Contreras, Boston College’s administrator of the Office of Degree Authorization reports, “As recent cases show, the "false approval" problem has become widespread and now occurs in an astonishing diversity of venues. There have been problems with regulatory schemes and bogus colleges supposedly based in Australia, Canada, Malawi, Mexico, and St. Kitts. Of course, the United States is also full of diploma mills. We are now in a period of universal domestic and international portability of bad standards, poor enforcement, and worthless degrees.”
A recent example comes from Singapore and, sadly, concerns an Oregon college. Boston College was contacted by a Singaporean who had “earned" a degree from this school. Unfortunately, no such school exists. The entity was just an incorporated business (now shut down) with a college-like name. The incorporator sold degrees mainly in Asia and used the state-issued business license as proof that the "school" was government approved. Since this diploma mill made no attempt to sell degrees within Oregon, we did not even know it existed.
The true core of this problem is illustrated by the Singaporean’s main concern. The degree holder was troubled not because he had been scammed or because we had not done our job in catching the perp, but because we insisted that the degree was worthless. Under Singapore law, it seems, this was a "U.S.-approved degree" and thus legal for use, and he wanted to use it. So the United States is not only the victim of international falsity in academic credentials, but also the perpetrator, since (unlike Oregon) some states do not prohibit the operation of diploma mills.
One of the most important things young people can do to improve their lives is to get a good education. Unfortunately, scammers know this and build a variety of frauds to deceptively get money from people who are trying to improve themselves. Thus we get educational scams.
The Nation, a highly respected magazine, presented this information in 2004: “When large amounts of cash and the entrepreneurial spirit intersect with an institution as impoverished and trusting as schools, it's not long before financial scandal strikes. That time is now here.”
These scandals involve construction shortcuts and kickbacks, diverted funds, outright theft, and all the white-collar crimes we associate with Enron, the financial institutes, and other industries. In 2008, in a school in New Jersey that was being constructed, the contractors took so many short cuts and used such substandard material that the building was a disaster waiting to happen. In fact, it was such a horror story that the building had to be totally renovated at a cost considerably higher than the original estimate. Although several people did go to jail, the renovations, the trial and related expenses were all footed by the local taxpayers. The building may not open until 2012.
I once had the honor of working for a man who was proud to display his Doctor of Divinity degree. As I got to know him, during a five-month relationship, he proved over-and-over that his corrupt business methods, his desire to cut corners, and eventually the scam he was perpetrating, showed he was as phony as his degree. He had paid several hundred dollars to purchase it online.
The FTC warns, “Are you ever tempted by an email or an ad claiming you can “earn a college degree based...on life experience”? Don’t be, say attorneys for the Federal Trade Commission, America’s consumer protection agency. “Chances are good that the ad is for a ‘diploma mill,’ a company that offers ‘degrees’ or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.”
Most employers and educational institutions consider it lying if you claim academic credentials that you didn't earn through actual course work. Federal officials say it’s risky behavior: If you use a so-called “degree” from a diploma mill to apply for a job or promotion, you risk not getting hired, getting fired, and in some cases, prosecution.”
Taking it a step further, USA Today has this story in 2003: “After Marion Kolitwenzew learned her daughter was diabetic, she took her in 1999 to a specialist for care. He seemed impressive, with an office full of medical supplies and a slew of medical degrees from universities. It turns out those diplomas came from degree mills, which are bogus universities that confer degrees for little or no study. When the mother followed his advice and took her daughter off insulin, the 8-year-old girl began vomiting and died.”
“The North Carolina man who treated her, Laurence Perry, is serving up to 15 months in jail for manslaughter and practicing medicine without a license. But questionable degrees aren't just being used by bogus doctors.”
“Employees armed with academic credentials from diploma mills have held jobs as sex-abuse counselors, college vice presidents, child psychologists, athletic coaches and engineers. While some employees simply falsify their résumés and make up degrees, others turn to diploma mills. These bogus colleges and universities make it easier to pull off the résumé charade because they provide fake diplomas and transcripts that often seem legitimate.”
USA Today discovered, “There are more than 400 diploma mills and 300 counterfeit diploma Web sites, and business is thriving amid a lackluster economy — doubling in the past five years to more than $500 million annually, according to estimates. Some fake schools in Europe have made as much as $50 million a year and have as many as 15,000 "graduates" a year. The number of fake accrediting organizations set up by con artists to provide diploma mills an air of legitimacy has swelled from half a dozen 10 years ago to 260 in 2003.”
Alan Contreras, Boston College’s administrator of the Office of Degree Authorization reports, “As recent cases show, the "false approval" problem has become widespread and now occurs in an astonishing diversity of venues. There have been problems with regulatory schemes and bogus colleges supposedly based in Australia, Canada, Malawi, Mexico, and St. Kitts. Of course, the United States is also full of diploma mills. We are now in a period of universal domestic and international portability of bad standards, poor enforcement, and worthless degrees.”
A recent example comes from Singapore and, sadly, concerns an Oregon college. Boston College was contacted by a Singaporean who had “earned" a degree from this school. Unfortunately, no such school exists. The entity was just an incorporated business (now shut down) with a college-like name. The incorporator sold degrees mainly in Asia and used the state-issued business license as proof that the "school" was government approved. Since this diploma mill made no attempt to sell degrees within Oregon, we did not even know it existed.
The true core of this problem is illustrated by the Singaporean’s main concern. The degree holder was troubled not because he had been scammed or because we had not done our job in catching the perp, but because we insisted that the degree was worthless. Under Singapore law, it seems, this was a "U.S.-approved degree" and thus legal for use, and he wanted to use it. So the United States is not only the victim of international falsity in academic credentials, but also the perpetrator, since (unlike Oregon) some states do not prohibit the operation of diploma mills.
Tuesday, October 13, 2009
The Ten Best Ways to Waste Money
We all spend money on things we do not really need. You frequently see lengthy articles in magazines and newspapers telling you ways to save money. Here are ten things you can easily do to waste your hard earned cash. They are certainly not in any particular order.
1. Buy a soda at a restaurant. Including the soda itself, the ice, and the salaries they pay for cleaning and serving, a typical 12-ounce soda costs under ten cents. What you are getting is 4 ounces of beverage and a lot of ice. If you must purchase soda, ask for it with no ice (or one cube at the most), or ask for a separate glass of ice and put it in as needed.
2. Buy something on impulse. Stores are set up so that you most readily see things that they want you to purchase. Today, in a Best Buy, I saw two end caps with their highest profit ear buds (for iPods) three aisles over were similar products, possibly better quality, and most at lower cost.
3. Believe an advertisement. Stop, go back to my Advertising Blog #1. Start reading.
4. Don’t bother reading contracts, bills or disclaimers. Who needs all that small print? You do. The typical person gets billed for almost $500 a year s/her did not purchase.
5. Accept what other people tell you. I have just the product for you. This natural remedy will cure your headaches, prevent cavities, and get rid of shoe odor.
6. Purchase nostrums, vitamins, and vanity items. Why not? In the United States alone people spend over $80 billion a year hiding wrinkles, dying hair, whitening teeth, and taking over-the-counter cures for things they might not even have.
7. Don’t bother checking store prices. What a pain. Just because something that’s marked “on sale” at $4.99 is more than twice what the supermarket down the street usually gets for the same product, and you’re going there anyway, believe them. Hey, if it’s on sale it must be a great price. They won’t lie, would they?
8. Pay in advance for a service. Everyone is honest. There is no need for contracts. They guy says he’ll surface your driveway for $80 – hey, believe him. Give him the money and … why is he driving away?
9. Accept products and services without asking questions. Get a free home alarm. Get pest control coverage for a year. Buy an extended warrantee. Besides the fact that more than 60% of such things are either scams or nearly useless, go ahead, get it.
10. Do not seek alternatives. See an item, like an item, buy it. There is never any need to check out reviews or look online to see what other stores are getting for the same product. Just because my wife found the same surge protector online at Amazon for $49.99, I might as well pick this one up at XYZ Electronics for $129.00.
This ends our lengthy run of advertising scams, but certainly not the end of the line for examining ways people cheat you. Next, we’ll look at education-related cons.
1. Buy a soda at a restaurant. Including the soda itself, the ice, and the salaries they pay for cleaning and serving, a typical 12-ounce soda costs under ten cents. What you are getting is 4 ounces of beverage and a lot of ice. If you must purchase soda, ask for it with no ice (or one cube at the most), or ask for a separate glass of ice and put it in as needed.
2. Buy something on impulse. Stores are set up so that you most readily see things that they want you to purchase. Today, in a Best Buy, I saw two end caps with their highest profit ear buds (for iPods) three aisles over were similar products, possibly better quality, and most at lower cost.
3. Believe an advertisement. Stop, go back to my Advertising Blog #1. Start reading.
4. Don’t bother reading contracts, bills or disclaimers. Who needs all that small print? You do. The typical person gets billed for almost $500 a year s/her did not purchase.
5. Accept what other people tell you. I have just the product for you. This natural remedy will cure your headaches, prevent cavities, and get rid of shoe odor.
6. Purchase nostrums, vitamins, and vanity items. Why not? In the United States alone people spend over $80 billion a year hiding wrinkles, dying hair, whitening teeth, and taking over-the-counter cures for things they might not even have.
7. Don’t bother checking store prices. What a pain. Just because something that’s marked “on sale” at $4.99 is more than twice what the supermarket down the street usually gets for the same product, and you’re going there anyway, believe them. Hey, if it’s on sale it must be a great price. They won’t lie, would they?
8. Pay in advance for a service. Everyone is honest. There is no need for contracts. They guy says he’ll surface your driveway for $80 – hey, believe him. Give him the money and … why is he driving away?
9. Accept products and services without asking questions. Get a free home alarm. Get pest control coverage for a year. Buy an extended warrantee. Besides the fact that more than 60% of such things are either scams or nearly useless, go ahead, get it.
10. Do not seek alternatives. See an item, like an item, buy it. There is never any need to check out reviews or look online to see what other stores are getting for the same product. Just because my wife found the same surge protector online at Amazon for $49.99, I might as well pick this one up at XYZ Electronics for $129.00.
This ends our lengthy run of advertising scams, but certainly not the end of the line for examining ways people cheat you. Next, we’ll look at education-related cons.
Sunday, October 4, 2009
Consumer Safety & Awareness Part 36
Advertising Scams (Part 10 – Words that Deceive, part 2)
More words that advertisers love to use and what they really mean. Continued from last week.
Free Trial Offer – Many companies do provide free offers or coupons for a free product. Do not, though fall for the scam where you get something for free yet have to give your credit card number for shipping and handling. In almost all cases these are membership club scams. In the small print you’ll find that by getting the free sample you are agreeing to accept more each month at an unrealistic price (plus more shipping and handling).
Feel Better! Look Younger! – Ponce de Leon’s descendants are still searching for the Fountain of Youth and such products make huge promises and sell for up to over a thousand dollars. Never believe an ad that promises to make you look better or feel better. For about what they cost you can go to a doctor specializing in what you need “cured” and have a realistic assessment. Almost all of these products are no better than snake oil or eye of newt.
The Miracle Solution – Since ancient times people have been pushing cure-alls or solutions to ailments. In the Dark Ages there were longevity potions, arthritis magnets, and prayers for invalids. In the 1800s, peddlers sold tonics, elixirs, salves, and pills. Whatever ailed you, they had a cure for. In the 1980s, we had cures for all sorts of cancer, menstrual cramps, impotency, and hair loss. Actually some drug companies have made limited break-throughs with some of these concerns, but the side effects may be worse than the original problem.
All Natural – (or No Artificial Ingredients) – All things are derived from nature. It used to be that anything could use this term, and many products still do. But look closely at the ingredients – all natural preservatives, food colorings, flavors… and none of them are any better for you than the old-fashioned stuff.
One Time Offer – Buy it right now, I’ll give you the best deal ever. Walk away. Don’t even talk to the guy. It’s stolen, a fake, or junk.
Includes Omega 3 - (or Fish Oil, or Antioxidant, or Secret Ingredient, and 200 other or more other supposedly health items) – Whatever the most recent nutritional study discovers, within weeks products will contain the ingredient. The worst is Acia, a useless product that has been advertised for weight loss, diabetic cure, cancer cure, and dozens of other things. The Food and Drug Administration and dozens of independent labs have found no value in these products. So why do people buy them? Read on….
Listen to What Our Users Have to Say – Testimonials are phony. The people in them are actors and paid to say what they declare is the latest best product. The actors will never be fined or sent to jail because they are just playing a role. The companies do not mind getting a $4 million fine after making a profit of $50 million.
Multi-level marketing companies (for a list see Wikipedia) use testimonials to sell their overpriced useless products. They get your friends, neighbors, and relatives hooked on one of their products and tell them they can get their supply at a discount if they become a representative.
Improve Your Sex Life – (or Natural Male Enhancement) – Sexual aides have been around for centuries and every time there is a real breakthrough phony products follow. In the 1990s there were products that stated they “contained an ingredient found in Viagra.” Yes – their pill used the same solvent or thickener, or coloring agent. Also watch out for sale of these items on the Internet at a discount – most of them are phony.
More words that advertisers love to use and what they really mean. Continued from last week.
Free Trial Offer – Many companies do provide free offers or coupons for a free product. Do not, though fall for the scam where you get something for free yet have to give your credit card number for shipping and handling. In almost all cases these are membership club scams. In the small print you’ll find that by getting the free sample you are agreeing to accept more each month at an unrealistic price (plus more shipping and handling).
Feel Better! Look Younger! – Ponce de Leon’s descendants are still searching for the Fountain of Youth and such products make huge promises and sell for up to over a thousand dollars. Never believe an ad that promises to make you look better or feel better. For about what they cost you can go to a doctor specializing in what you need “cured” and have a realistic assessment. Almost all of these products are no better than snake oil or eye of newt.
The Miracle Solution – Since ancient times people have been pushing cure-alls or solutions to ailments. In the Dark Ages there were longevity potions, arthritis magnets, and prayers for invalids. In the 1800s, peddlers sold tonics, elixirs, salves, and pills. Whatever ailed you, they had a cure for. In the 1980s, we had cures for all sorts of cancer, menstrual cramps, impotency, and hair loss. Actually some drug companies have made limited break-throughs with some of these concerns, but the side effects may be worse than the original problem.
All Natural – (or No Artificial Ingredients) – All things are derived from nature. It used to be that anything could use this term, and many products still do. But look closely at the ingredients – all natural preservatives, food colorings, flavors… and none of them are any better for you than the old-fashioned stuff.
One Time Offer – Buy it right now, I’ll give you the best deal ever. Walk away. Don’t even talk to the guy. It’s stolen, a fake, or junk.
Includes Omega 3 - (or Fish Oil, or Antioxidant, or Secret Ingredient, and 200 other or more other supposedly health items) – Whatever the most recent nutritional study discovers, within weeks products will contain the ingredient. The worst is Acia, a useless product that has been advertised for weight loss, diabetic cure, cancer cure, and dozens of other things. The Food and Drug Administration and dozens of independent labs have found no value in these products. So why do people buy them? Read on….
Listen to What Our Users Have to Say – Testimonials are phony. The people in them are actors and paid to say what they declare is the latest best product. The actors will never be fined or sent to jail because they are just playing a role. The companies do not mind getting a $4 million fine after making a profit of $50 million.
Multi-level marketing companies (for a list see Wikipedia) use testimonials to sell their overpriced useless products. They get your friends, neighbors, and relatives hooked on one of their products and tell them they can get their supply at a discount if they become a representative.
Improve Your Sex Life – (or Natural Male Enhancement) – Sexual aides have been around for centuries and every time there is a real breakthrough phony products follow. In the 1990s there were products that stated they “contained an ingredient found in Viagra.” Yes – their pill used the same solvent or thickener, or coloring agent. Also watch out for sale of these items on the Internet at a discount – most of them are phony.
Monday, September 28, 2009
Consumer Safety & Awareness Part 35
Advertising Scams (Part 9 – Words that Deceive, part 1)
We all recognize them: the sensationalized words that advertisers use to attract our attention. Remember, they have to get you to look at their product before they can sell it to you. Here are a few favorites along with their true meaning:
New! - (First warning – the exclamation mark is your first indication that they are trying to trick you.) – Does “new” mean better? Many recently released products are subject to recall or upgrades. Ask yourself: What about this is “new”? Is it a totally new product? Is this an old product with some new added?
It is frequently the second choice. In such cases it may be a new package (whoopee) or it may contain a new ingredient. There probably is no explanation on the package to explain why they had to change the contents – so research it first. The new ingredient may simply be a new preservative, a substitution, or some over-the-counter additive that may sound good but in reality does little or nothing. Accompanying “New!” is usually a higher price.
Better – (or Improved) - The first thing I wonder is why were they selling an inferior product to begin with. Is it “better” because it contains something “new” or because they changed the taste? Reread “New!” and you’ve just about covered this topic as well.
Guaranteed – (or Warranted) – In most cases this phrase is useless. The product itself may be guaranteed to work if you use it exactly as described, in a specific environment, at a certain time of the day, or when your in-laws are visiting. Never will the terms of this promise be spelled out on a package, and rarely in an advertisement. The Web site may have the details, but it will take you 10 minutes searching the site to find it and three hours of reading to understand it.
Guarantees always contain exceptions. There are always time limits (1 year, 3 months, 10 days, until you open the box) and usage limits (Pronghorn toothpaste is guaranteed to prevent cavities if you use it four times a day, with a Pronghorn Superior Toothbrush, along with daily flossing, with Pronghorn Super-Glide Floss. You must also prove that you visit a Pronghorn pre-approved dentist for cleaning at least once a month.).
Even if you meet all the requirements, what sort of satisfaction will they provide? They may only replace a certain part or it may have to be brought or mailed in to a certified repair store (at your cost usually). They may repair it or substitute another repaired product – rarely will a company give you a completely new product to replace a malfunctioning one.
Some guarantees are “money back if not completely satisfied.” In most cases you have to pay shipping and possibly a restocking fee, which, together, may come to more than you originally paid.
Better Than – My dog’s better than your dog. Our car has a larger glove compartment… get better mileage than…. And has a lower price than… If a product’s only quality is that it has some feature that is better than other products, look at those other products. Very few things have only one or two features. Car ads tout a couple of great items, yet they contain thousands. Just because a few are better may not mean it’s a better product.
Doctor Approved – (or Clinically Proven) – Almost every company that sells medical or medically related products have physicians on staff. They can easily get their company doctor to approve the product. They can even get 9 out of 10 of their company doctors to approve (and the 10th will be fired).
Similarly, such companies pay to have their products tested. They might even hire a dozen or more independent labs. Their ads, though will only describe the results of those that have good things to say about the product.
Imagine, FDA approved drugs have an amazing testing program, yet hundreds of them are recalled each year. Over-the-counter, homeopathic, and “natural” remedies have no such legal obligation. They frequently set up their own testing labs, give them fancy names, and then say how good the product is. (Also see “Listen to What Our Users Have to Say “ which will be in next week’s blog).
Sale – Do not be fooled into thinking that everything you see in a sales advertisement is ”on sale.” A recent examination of a supermarket weekly ad showed that 23% of the products had reduced prices while 8% of the items shown were price increases (compared with the previous week). Buy-One-Get-One ads may also be deceptive, with the store selling the product at higher than normal prices or at “list price,” which is usually more than you’d normally pay.
Starting at only… – (and For As Low As…) – A sure bet that what you want will be considerably higher. This is especially true with cruise, airline, and hotel prices. The one-week cruise for $699 may be for one room, located on the inside, lowest level, next to the laundry room. Also watch for vacation prices that are per-person, rather than per-room. Two people will pay twice the price.
Save up to – This is the same at the previous one. The ad may say you can save up to a huge amount, but then again you might not. This is especially true in auto ads that use the undefined terms “for qualified buyers.”
For Only – You have no idea what the value of this product is, so when you are quoted “only” $24,000 for a bathroom makeover or $43,000 for a time share, what do you have to compare it with. Become an expert before you shop. In fact, print out sales ads from the Internet and take them with you.
We once visited a time-share that wanted to sell us a week “for only $29,000.” The pitch ended when I showed them that there were more than a dozen of their units currently selling on the Internet for under $10,000.
Continued next week.
We all recognize them: the sensationalized words that advertisers use to attract our attention. Remember, they have to get you to look at their product before they can sell it to you. Here are a few favorites along with their true meaning:
New! - (First warning – the exclamation mark is your first indication that they are trying to trick you.) – Does “new” mean better? Many recently released products are subject to recall or upgrades. Ask yourself: What about this is “new”? Is it a totally new product? Is this an old product with some new added?
It is frequently the second choice. In such cases it may be a new package (whoopee) or it may contain a new ingredient. There probably is no explanation on the package to explain why they had to change the contents – so research it first. The new ingredient may simply be a new preservative, a substitution, or some over-the-counter additive that may sound good but in reality does little or nothing. Accompanying “New!” is usually a higher price.
Better – (or Improved) - The first thing I wonder is why were they selling an inferior product to begin with. Is it “better” because it contains something “new” or because they changed the taste? Reread “New!” and you’ve just about covered this topic as well.
Guaranteed – (or Warranted) – In most cases this phrase is useless. The product itself may be guaranteed to work if you use it exactly as described, in a specific environment, at a certain time of the day, or when your in-laws are visiting. Never will the terms of this promise be spelled out on a package, and rarely in an advertisement. The Web site may have the details, but it will take you 10 minutes searching the site to find it and three hours of reading to understand it.
Guarantees always contain exceptions. There are always time limits (1 year, 3 months, 10 days, until you open the box) and usage limits (Pronghorn toothpaste is guaranteed to prevent cavities if you use it four times a day, with a Pronghorn Superior Toothbrush, along with daily flossing, with Pronghorn Super-Glide Floss. You must also prove that you visit a Pronghorn pre-approved dentist for cleaning at least once a month.).
Even if you meet all the requirements, what sort of satisfaction will they provide? They may only replace a certain part or it may have to be brought or mailed in to a certified repair store (at your cost usually). They may repair it or substitute another repaired product – rarely will a company give you a completely new product to replace a malfunctioning one.
Some guarantees are “money back if not completely satisfied.” In most cases you have to pay shipping and possibly a restocking fee, which, together, may come to more than you originally paid.
Better Than – My dog’s better than your dog. Our car has a larger glove compartment… get better mileage than…. And has a lower price than… If a product’s only quality is that it has some feature that is better than other products, look at those other products. Very few things have only one or two features. Car ads tout a couple of great items, yet they contain thousands. Just because a few are better may not mean it’s a better product.
Doctor Approved – (or Clinically Proven) – Almost every company that sells medical or medically related products have physicians on staff. They can easily get their company doctor to approve the product. They can even get 9 out of 10 of their company doctors to approve (and the 10th will be fired).
Similarly, such companies pay to have their products tested. They might even hire a dozen or more independent labs. Their ads, though will only describe the results of those that have good things to say about the product.
Imagine, FDA approved drugs have an amazing testing program, yet hundreds of them are recalled each year. Over-the-counter, homeopathic, and “natural” remedies have no such legal obligation. They frequently set up their own testing labs, give them fancy names, and then say how good the product is. (Also see “Listen to What Our Users Have to Say “ which will be in next week’s blog).
Sale – Do not be fooled into thinking that everything you see in a sales advertisement is ”on sale.” A recent examination of a supermarket weekly ad showed that 23% of the products had reduced prices while 8% of the items shown were price increases (compared with the previous week). Buy-One-Get-One ads may also be deceptive, with the store selling the product at higher than normal prices or at “list price,” which is usually more than you’d normally pay.
Starting at only… – (and For As Low As…) – A sure bet that what you want will be considerably higher. This is especially true with cruise, airline, and hotel prices. The one-week cruise for $699 may be for one room, located on the inside, lowest level, next to the laundry room. Also watch for vacation prices that are per-person, rather than per-room. Two people will pay twice the price.
Save up to – This is the same at the previous one. The ad may say you can save up to a huge amount, but then again you might not. This is especially true in auto ads that use the undefined terms “for qualified buyers.”
For Only – You have no idea what the value of this product is, so when you are quoted “only” $24,000 for a bathroom makeover or $43,000 for a time share, what do you have to compare it with. Become an expert before you shop. In fact, print out sales ads from the Internet and take them with you.
We once visited a time-share that wanted to sell us a week “for only $29,000.” The pitch ended when I showed them that there were more than a dozen of their units currently selling on the Internet for under $10,000.
Continued next week.
Wednesday, September 9, 2009
Consumer Safety & Awareness Part 34
Advertising Scams
(Part 8 – Deception Through Subtraction)
This is the last in our series "Deception by..." Next week we will be taking a brief vacation. Join us on September 28 for some new thoughts about consumer awareness.
Keep the box size the same, or increase it, and reduce the contents. Pay more, get less. We can take ice cream as an example. The companies cite rising sugar and milk costs as the cause of the price increases in 2006. Typically, in New York’s Mid-Hudson region, a 64-ounce container of brand name ice cream was retailing at $1.99 and occasionally going on sale for as low as $1.49. That year there was a reduction in container size to 56 ounces accompanied with a price rise to $2.99. Interpreting that, we go from 3 cents an ounce to 5.3 cents per ounce, a 60% increase almost overnight.
Forward to 2009 and milk and sugar prices are within 5% of their pre-price increase. Transportation costs have been reduced. Wages have gone up an average of under 4%, yet we now find that brand name ice cream is selling for $4.99 and the container holds 48 ounces. Per ounce that’s 10.4 cents, more than 3 times the cost it was three years ago. Expenses have, perhaps, risen 10% during that time.
How do companies justify that?
In a recent news article, dairy farmers are complaining that they are receiving less than 50% of last year’s prices for raw milk. Processed milk has come down considerably recently, possibly by as much as 25%. Yogurt and cottage cheese have also seen a slight price drop. But other dairy products have seen price increases. Cheese is up almost 25%. Bakeries are charging more citing increase milk costs. (Eggs are currently selling at the lowest in several years. Sugar and flour wholesale prices are down as well.)
Yet store brand ice cream, store brand cheese, yogurt, sour cream, and other dairy products have seen drastic price reductions. Bakery products continue to increase in price. If you ask why – you get the standard reply: “Cost of ingredients have increased.”
Bananas? There was a blight in the Cavendish bananas that we typically see in the stores. It’s one of hundreds of types of bananas, the one that we’re used to eating. Prices increased dramatically between 2006 and 2008 as a result of shortages and the cost of research to improve the crop. This has paid off, as the 2009 harvest is bountiful. WalMart has reduced prices from a high of 69-cents to 42-cents. Several box stores are down below that. Yet supermarkets, now that people are used to 69-cents, have generally refused to lower their prices.
Public congratulations must go to cereal companies. Their prices, which rose in 2005-6 due to the amount of corn diverted to ethanol, stabilized once the price of ingredients did. Recently we have seen sale prices reflecting levels not seen in over ten years. Post and Kellogg cereal, same size boxes (and occasionally promotional bonuses) can be seen for under $2.00, less than half the 2007 price.
A few weeks ago we compared advertising to magician tricks – now you see it, now you pay twice the price. Deception through subtraction applies to advertising pictures as well. Have you ever compared a store’s ad picture to the real thing? They show huge English muffins holding overflowing egg-and-cheese sandwiches. In actuality, they usually picture the pre-cooked items. Once prepared and handed to you, they may be half the size.
Last winter a national chicken restaurant was advertising 12 pieces for $9.99 (with all the trimmings), 83-cents per piece. Now they have a great deal for you – 16 pieces for only $19.95. That’s a price increase of 42 cents per piece of chicken, a 50% increase. A slightly larger quantity for a considerably larger price.
(Part 8 – Deception Through Subtraction)
This is the last in our series "Deception by..." Next week we will be taking a brief vacation. Join us on September 28 for some new thoughts about consumer awareness.
Keep the box size the same, or increase it, and reduce the contents. Pay more, get less. We can take ice cream as an example. The companies cite rising sugar and milk costs as the cause of the price increases in 2006. Typically, in New York’s Mid-Hudson region, a 64-ounce container of brand name ice cream was retailing at $1.99 and occasionally going on sale for as low as $1.49. That year there was a reduction in container size to 56 ounces accompanied with a price rise to $2.99. Interpreting that, we go from 3 cents an ounce to 5.3 cents per ounce, a 60% increase almost overnight.
Forward to 2009 and milk and sugar prices are within 5% of their pre-price increase. Transportation costs have been reduced. Wages have gone up an average of under 4%, yet we now find that brand name ice cream is selling for $4.99 and the container holds 48 ounces. Per ounce that’s 10.4 cents, more than 3 times the cost it was three years ago. Expenses have, perhaps, risen 10% during that time.
How do companies justify that?
In a recent news article, dairy farmers are complaining that they are receiving less than 50% of last year’s prices for raw milk. Processed milk has come down considerably recently, possibly by as much as 25%. Yogurt and cottage cheese have also seen a slight price drop. But other dairy products have seen price increases. Cheese is up almost 25%. Bakeries are charging more citing increase milk costs. (Eggs are currently selling at the lowest in several years. Sugar and flour wholesale prices are down as well.)
Yet store brand ice cream, store brand cheese, yogurt, sour cream, and other dairy products have seen drastic price reductions. Bakery products continue to increase in price. If you ask why – you get the standard reply: “Cost of ingredients have increased.”
Bananas? There was a blight in the Cavendish bananas that we typically see in the stores. It’s one of hundreds of types of bananas, the one that we’re used to eating. Prices increased dramatically between 2006 and 2008 as a result of shortages and the cost of research to improve the crop. This has paid off, as the 2009 harvest is bountiful. WalMart has reduced prices from a high of 69-cents to 42-cents. Several box stores are down below that. Yet supermarkets, now that people are used to 69-cents, have generally refused to lower their prices.
Public congratulations must go to cereal companies. Their prices, which rose in 2005-6 due to the amount of corn diverted to ethanol, stabilized once the price of ingredients did. Recently we have seen sale prices reflecting levels not seen in over ten years. Post and Kellogg cereal, same size boxes (and occasionally promotional bonuses) can be seen for under $2.00, less than half the 2007 price.
A few weeks ago we compared advertising to magician tricks – now you see it, now you pay twice the price. Deception through subtraction applies to advertising pictures as well. Have you ever compared a store’s ad picture to the real thing? They show huge English muffins holding overflowing egg-and-cheese sandwiches. In actuality, they usually picture the pre-cooked items. Once prepared and handed to you, they may be half the size.
Last winter a national chicken restaurant was advertising 12 pieces for $9.99 (with all the trimmings), 83-cents per piece. Now they have a great deal for you – 16 pieces for only $19.95. That’s a price increase of 42 cents per piece of chicken, a 50% increase. A slightly larger quantity for a considerably larger price.
Tuesday, September 1, 2009
Consumer Safety & Awareness Part 33
Advertising Scams
(Part 7 – Deception Through Addition)
Billy Mays was a super salesman. His products may have caused some of us to blink twice, and his $19.95 prices rarely varied. Whenever you saw him you’d wait for the punch line, “But wait, if you buy now….” He’d throw in a second item, or sometimes something totally unrelated. But Mr. Mays was always honest about the price. You saw the cost of shipping and handling right in his advertisement and the free items never created additional costs.
Mays and his partner, Anthony Sullivan, have had many imitators, and some of them practice deceptive advertising. They are easy to spot if you are paying attention. One item for the set price (usually $19.95, far below the value they say it’s worth) and lots of added bonuses. The catch comes at the end, and rapidly, “for additional shipping and handling.”
Thus the product, at perhaps $19.95 and $6.50 S & H, may be something you want, and the extras may be nice, but there may be three added items, each worth a few dollars, and each with an additional $6.50 S & H. There have been several of these deals where the total cost is over $50. While you can return the items and get your original $19.95 back, you cannot get the S & H refunded and you have to pay return costs (and possibly a restocking fee).
Another deception through addition practice, one that works so well that we’ve seen more than 100 companies use it, is to offer a product for free, with a small S & H charge. They only accept credit card purchases. In the small print, possibly not even in the original ad, but included in the documentation you get with the product, you have become enrolled in their “purchase club,” and will continue getting the product until you cancel it.
ProActiv, a skin care product, offers their product on television, in newspaper and magazine ads, and through web sites. You purchase their main product, get free bonuses, and you believe that’s the end of it. What you may not see is their small print, usually two to five levels down on pages you may never consider visiting. What you eventually find is:
“When you order our 3-Step System, alone or with additional products, you're automatically enrolled in the Proactiv® Solution Clear Skin Club: your passport to a variety of exclusive benefits designed specially to give you a clear advantage over acne.”
And…
“There's no minimum number of kits to buy, and you can cancel at any time.
· Never worry about running out or forgetting to reorder
· Every 60 days, receive a 2-month supply of your Proactiv Solution kit (less your free bonuses). Your credit card will be billed, plus shipping and handling, for each 60-day supply.”
Perhaps you did not expect to get another shipment, ever. But if you do not cancel prior to the second shipment going out, you’re stuck with it. ProActive may be an honest company with a good product. We do not make such judgment calls. What we do not like is their sales technique.
Yet it works so well that it has been imitated by companies that are very deceptive, yet stay within the law. Enzyte, “the number one selling supplement for natural male enhancement,” offers a free 30-day supply with $5.95 S & H. Only if you look closely you will find…
“*With your trial order today, you are enrolling in our free ViaLife Rewards Program. Approximately 1 week before your current cycles run out we will begin shipping you regular bi-monthly 60 day cycles and your credit card will be charged $79.90. Membership includes guaranteed free shipping plus special offers on other Vianda brands.”
Notice the asterisk? That tiny * will be very easy to overlook in their huge ad.
Before making any purchase from a television, print, or web advertisement, do your research.
(Part 7 – Deception Through Addition)
Billy Mays was a super salesman. His products may have caused some of us to blink twice, and his $19.95 prices rarely varied. Whenever you saw him you’d wait for the punch line, “But wait, if you buy now….” He’d throw in a second item, or sometimes something totally unrelated. But Mr. Mays was always honest about the price. You saw the cost of shipping and handling right in his advertisement and the free items never created additional costs.
Mays and his partner, Anthony Sullivan, have had many imitators, and some of them practice deceptive advertising. They are easy to spot if you are paying attention. One item for the set price (usually $19.95, far below the value they say it’s worth) and lots of added bonuses. The catch comes at the end, and rapidly, “for additional shipping and handling.”
Thus the product, at perhaps $19.95 and $6.50 S & H, may be something you want, and the extras may be nice, but there may be three added items, each worth a few dollars, and each with an additional $6.50 S & H. There have been several of these deals where the total cost is over $50. While you can return the items and get your original $19.95 back, you cannot get the S & H refunded and you have to pay return costs (and possibly a restocking fee).
Another deception through addition practice, one that works so well that we’ve seen more than 100 companies use it, is to offer a product for free, with a small S & H charge. They only accept credit card purchases. In the small print, possibly not even in the original ad, but included in the documentation you get with the product, you have become enrolled in their “purchase club,” and will continue getting the product until you cancel it.
ProActiv, a skin care product, offers their product on television, in newspaper and magazine ads, and through web sites. You purchase their main product, get free bonuses, and you believe that’s the end of it. What you may not see is their small print, usually two to five levels down on pages you may never consider visiting. What you eventually find is:
“When you order our 3-Step System, alone or with additional products, you're automatically enrolled in the Proactiv® Solution Clear Skin Club: your passport to a variety of exclusive benefits designed specially to give you a clear advantage over acne.”
And…
“There's no minimum number of kits to buy, and you can cancel at any time.
· Never worry about running out or forgetting to reorder
· Every 60 days, receive a 2-month supply of your Proactiv Solution kit (less your free bonuses). Your credit card will be billed, plus shipping and handling, for each 60-day supply.”
Perhaps you did not expect to get another shipment, ever. But if you do not cancel prior to the second shipment going out, you’re stuck with it. ProActive may be an honest company with a good product. We do not make such judgment calls. What we do not like is their sales technique.
Yet it works so well that it has been imitated by companies that are very deceptive, yet stay within the law. Enzyte, “the number one selling supplement for natural male enhancement,” offers a free 30-day supply with $5.95 S & H. Only if you look closely you will find…
“*With your trial order today, you are enrolling in our free ViaLife Rewards Program. Approximately 1 week before your current cycles run out we will begin shipping you regular bi-monthly 60 day cycles and your credit card will be charged $79.90. Membership includes guaranteed free shipping plus special offers on other Vianda brands.”
Notice the asterisk? That tiny * will be very easy to overlook in their huge ad.
Before making any purchase from a television, print, or web advertisement, do your research.
Monday, August 24, 2009
Consumer Safety & Awareness Part 32
Advertising Scams
(Part 6 – Deception Through Inflation)
Investor’s World defines “inflation” as “The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances.”
Even with that definition, and the many others available to us, economists argue over what it really means, what causes it, and how to fix it (assuming there is a need to).
In An Analysis and History of Inflation, Don Paarlberg states, “Consumers blame food processors and distributors for price increases that result from inflation. Likewise, increases in rent are attributed to greedy landlords. Manufacturers who raise prices are accused of profiteering, even when they may be losing money.”
He goes on to explain that inflation is actually caused by the government’s continuous increase in the amount of money available – the more money, the less it is worth, and the more (in terms of the American dollar) things will cost.
Many consumer advocates, though, including myself, feel that in some cases manufacturers and merchants do artificially cause price inflation in order to increase profit. The case for this was made by WalMart’s demand this past winter that its suppliers lower wholesale prices or they would switch to less expensive brands, including their own house label. If the rapid rise in food and household good costs was out of the control of the manufacturers, shippers, and others involved in the production end, WalMart, the leading brand in price management, would not have made the demand. To back up that possibility, it was reported that within a few weeks more than half the suppliers did roll back prices, some considerably.
Others blame the theory of Supply and Demand as the cause of inflation – not only is the population increasing, thus causing more demand, nations that previously had little need for luxury products are now clamoring for them. Opposing that is the ever-increasing efficiency of manufacturing and production. Increases in demand are frequently offset by greater production per acre (which is offset by fewer acres being dedicated to production). Increases in demand are offset by more efficient production methods and the use of new material (which is offset by a decline in availability of raw material).
Mr. Paarlberg also comments, “The logical way to deal with the problem of inflation is to stabilize the value of money, in which case both inflation and deflation would disappear, and their inequities with them. It is understood that the way of doing this is to limit the issue of money. But such a course would require more discipline than the public and public officials worldwide have been able to muster. There are those who have vested interests in inflation, and others who gain by deflation, so none of the various proposals for stabilizing the value of money has been found acceptable.”
This, though, does not take into account the growing desire by managers and stockholders for greater salaries, dividends and benefits.
There is one pressure that consumers can bring forth to fight artificially induced inflation – stop purchasing those products whose prices have artificially increased. Look for sales, purchase store brands, compare prices from store to store.
There are nine supermarkets within 12 miles of my house. This week one is selling green seedless grapes for 89-cents, one has 99-cents, and another $1.29. The remaining are all charging $1.99 to $2.99 a pound. One has the audacity to advertise their $2.49 price as a “sale.” If you purchase grapes at any of the higher-priced stores you are fostering artificial inflation.
During any week, anywhere in the country, you will find similar discrepancies. Until the consumers of this country become better education and act with knowledge, deception through inflation will remain with us.
(Part 6 – Deception Through Inflation)
Investor’s World defines “inflation” as “The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances.”
Even with that definition, and the many others available to us, economists argue over what it really means, what causes it, and how to fix it (assuming there is a need to).
In An Analysis and History of Inflation, Don Paarlberg states, “Consumers blame food processors and distributors for price increases that result from inflation. Likewise, increases in rent are attributed to greedy landlords. Manufacturers who raise prices are accused of profiteering, even when they may be losing money.”
He goes on to explain that inflation is actually caused by the government’s continuous increase in the amount of money available – the more money, the less it is worth, and the more (in terms of the American dollar) things will cost.
Many consumer advocates, though, including myself, feel that in some cases manufacturers and merchants do artificially cause price inflation in order to increase profit. The case for this was made by WalMart’s demand this past winter that its suppliers lower wholesale prices or they would switch to less expensive brands, including their own house label. If the rapid rise in food and household good costs was out of the control of the manufacturers, shippers, and others involved in the production end, WalMart, the leading brand in price management, would not have made the demand. To back up that possibility, it was reported that within a few weeks more than half the suppliers did roll back prices, some considerably.
Others blame the theory of Supply and Demand as the cause of inflation – not only is the population increasing, thus causing more demand, nations that previously had little need for luxury products are now clamoring for them. Opposing that is the ever-increasing efficiency of manufacturing and production. Increases in demand are frequently offset by greater production per acre (which is offset by fewer acres being dedicated to production). Increases in demand are offset by more efficient production methods and the use of new material (which is offset by a decline in availability of raw material).
Mr. Paarlberg also comments, “The logical way to deal with the problem of inflation is to stabilize the value of money, in which case both inflation and deflation would disappear, and their inequities with them. It is understood that the way of doing this is to limit the issue of money. But such a course would require more discipline than the public and public officials worldwide have been able to muster. There are those who have vested interests in inflation, and others who gain by deflation, so none of the various proposals for stabilizing the value of money has been found acceptable.”
This, though, does not take into account the growing desire by managers and stockholders for greater salaries, dividends and benefits.
There is one pressure that consumers can bring forth to fight artificially induced inflation – stop purchasing those products whose prices have artificially increased. Look for sales, purchase store brands, compare prices from store to store.
There are nine supermarkets within 12 miles of my house. This week one is selling green seedless grapes for 89-cents, one has 99-cents, and another $1.29. The remaining are all charging $1.99 to $2.99 a pound. One has the audacity to advertise their $2.49 price as a “sale.” If you purchase grapes at any of the higher-priced stores you are fostering artificial inflation.
During any week, anywhere in the country, you will find similar discrepancies. Until the consumers of this country become better education and act with knowledge, deception through inflation will remain with us.
Monday, August 17, 2009
Consumer Safety & Awareness Part 31
Advertising Scams
(Part 5 – Deception Through Omission)
In a previous blog, we mentioned that advertisements are usually not long enough to include all aspects of a product. They certainly have no opportunity, even if they were foolish enough to want to, to include significant facts about similar competing items, except in a negative way.
Infomercials, though, many of which run 30 or 60 minutes in length, have sufficient time to provide such detail, yet somehow neglect to do so. In a half-hour commercial for an exercise machine, you may see 20 minutes of some healthy, robust individual using the product, always smiling, youthful, and sweat-free. The “host” continues to repeat the same fantastic reasons why this is the best toning, weight-loss, and muscle-building product on the market.
At no time are they any cautionary statements, except perhaps to check with your doctor to make sure you are healthy enough to use the machine. They do not expect anyone to do so, but their insurance carrier demands that such statement be included. Consider the disaster when someone is injured (and there always are injuries on any type of exercise equipment), and there had been no disclaimer. And what is not included in the ad is placed in the instruction book, with bright red stop signs and “caution” and other such labels.
Once you have purchased the product there is little chance of you returning it, and perhaps little opportunity to do so. Now that you have it you can be told of all the dangers to pets, children, and even healthy people cause by moving parts, heavy weights, sneezing while in motion, and… well any possible potential dangers.
Here are some warnings we found – try to discover what type of product they were on.
1. Remove wrapper, open mouth, insert muffin, eat. (OK, that one was obvious)
2. Use like regular soap, (See below, yes- you can peek)
3. This product is not to be used in bathrooms.
4. Do not climb over fence.
5. Please do not eat.
6. Do not use while sleeping.
7. Keep out of children.
8. May irritate eyes.
9. Do not use as earplugs.
Everyone always does ten of these. I decided to do nine just to be different.
Products that may really need to include precautions never put them in either their advertisements nor on the outside of the container. Probably the most famous warning is on computer software where the box has a warning not to open the package until you agree to the license for use agreement. The license can be found inside the box.
Also left off commercials is a list of other similar products that may perform better, be less expensive, more reliable, or healthier. It’s obvious why. Try to imagine a Pepsi commercial that states, “Store brand colas may be produced in our factory, have exactly the same ingredients and taste, yet cost half of what we charge.” Or perhaps this imaginary statement from a fast food restaurant, “Our ¼ pound hamburger averages 800 calories. It contains fillers, preservatives, and potentially other unhealthy ingredients. Eating this may lead to heart attacks, cancer, or allergic reactions.”
One can only wonder what an honest cigarette commercial might include. Now that the FDA can regulate contents, additives, and cigarette advertising, perhaps some honesty may appear. “If you smoke this product you have an 80% chance of becoming addicted. Continued use may lead to all sorts of unhealthy side effects. Breaking the smoking habit may be impossible. Since they cost so much you may land up a pauper, but your habit will still have you scrounging for something to smoke. But you’ll look cool.”
Answers:
1. Yes, a muffin
2. A bar of soap. Seriously.
3. A “Portable Bathroom Heater.”
4. Lion cage in a zoo,
5. A package of “Odor Eaters”
6. On a hair dryer.
7. Adhesive warning on a kitchen knife
8. On pepper spray
9. On a package of “Silly Putty”
(Part 5 – Deception Through Omission)
In a previous blog, we mentioned that advertisements are usually not long enough to include all aspects of a product. They certainly have no opportunity, even if they were foolish enough to want to, to include significant facts about similar competing items, except in a negative way.
Infomercials, though, many of which run 30 or 60 minutes in length, have sufficient time to provide such detail, yet somehow neglect to do so. In a half-hour commercial for an exercise machine, you may see 20 minutes of some healthy, robust individual using the product, always smiling, youthful, and sweat-free. The “host” continues to repeat the same fantastic reasons why this is the best toning, weight-loss, and muscle-building product on the market.
At no time are they any cautionary statements, except perhaps to check with your doctor to make sure you are healthy enough to use the machine. They do not expect anyone to do so, but their insurance carrier demands that such statement be included. Consider the disaster when someone is injured (and there always are injuries on any type of exercise equipment), and there had been no disclaimer. And what is not included in the ad is placed in the instruction book, with bright red stop signs and “caution” and other such labels.
Once you have purchased the product there is little chance of you returning it, and perhaps little opportunity to do so. Now that you have it you can be told of all the dangers to pets, children, and even healthy people cause by moving parts, heavy weights, sneezing while in motion, and… well any possible potential dangers.
Here are some warnings we found – try to discover what type of product they were on.
1. Remove wrapper, open mouth, insert muffin, eat. (OK, that one was obvious)
2. Use like regular soap, (See below, yes- you can peek)
3. This product is not to be used in bathrooms.
4. Do not climb over fence.
5. Please do not eat.
6. Do not use while sleeping.
7. Keep out of children.
8. May irritate eyes.
9. Do not use as earplugs.
Everyone always does ten of these. I decided to do nine just to be different.
Products that may really need to include precautions never put them in either their advertisements nor on the outside of the container. Probably the most famous warning is on computer software where the box has a warning not to open the package until you agree to the license for use agreement. The license can be found inside the box.
Also left off commercials is a list of other similar products that may perform better, be less expensive, more reliable, or healthier. It’s obvious why. Try to imagine a Pepsi commercial that states, “Store brand colas may be produced in our factory, have exactly the same ingredients and taste, yet cost half of what we charge.” Or perhaps this imaginary statement from a fast food restaurant, “Our ¼ pound hamburger averages 800 calories. It contains fillers, preservatives, and potentially other unhealthy ingredients. Eating this may lead to heart attacks, cancer, or allergic reactions.”
One can only wonder what an honest cigarette commercial might include. Now that the FDA can regulate contents, additives, and cigarette advertising, perhaps some honesty may appear. “If you smoke this product you have an 80% chance of becoming addicted. Continued use may lead to all sorts of unhealthy side effects. Breaking the smoking habit may be impossible. Since they cost so much you may land up a pauper, but your habit will still have you scrounging for something to smoke. But you’ll look cool.”
Answers:
1. Yes, a muffin
2. A bar of soap. Seriously.
3. A “Portable Bathroom Heater.”
4. Lion cage in a zoo,
5. A package of “Odor Eaters”
6. On a hair dryer.
7. Adhesive warning on a kitchen knife
8. On pepper spray
9. On a package of “Silly Putty”
Tuesday, August 11, 2009
Consumer Safety & Awareness Part 30
Advertising Scams
(Part 4 – Deception Through Comparison)
My dog’s better than your dog. (Taken from a pet food commercial in the 1970s.) That can be extended to any topic – my car, my home alarm company, my clothing line, my anything you want to buy. Comparing one item with another, whether similar or totally different, is an advertising gimmick that has been around for ages.
No matter what you compare, unless it’s an item to itself, any such action is deceitful and unfair. By law (copywrite and patent) no two products can be alike. Fords and Toyoda, Sealy and Perfect Sleeper, Coke and Pepsi. The best thing about having different products that fill in a similar nitch is that every person is unique, and our interests and likes differ.
When an advertisement uses taste tastes, or softness tests, or whatever comparison they use, you can bet the people they select for their poll are very carefully chosen. One of the criticisms placed on President Bush was that he stacked his community meetings with loyal Republicans and anyone who showed disagreement was removed from the hall. Can you imagine partisan political polls where the Republican tally only fanatical religious conservatives and the Democrats select gay-rights, pro-choice atheists? The results will be rather skewed.
So when a medicine is selected by 9 out of ten doctors, one must question whether those physicians (we assume in such cases that “doctor” = medical practitioner and not someone with a Doctorate in Engineering) have received massive amounts of that product as free samples, or whether they work for the company in question.
No poll, no sample, will ever ask all the qualified people. Political polls question perhaps a few thousand and extrapolate the results based on scientific and statistical principles. An advertising company has no such requirement. They can place their sample in tiny print somewhere in the ad, and keep it on the screen for five seconds. If they even do that much.
Nine out of ten cans prefer Friskies? Perhaps that was the only food they have been fed for the last three months and what they are used to.
Nine out of ten people prefer Blue Bonnet? Perhaps their only other choice was a product that had been specifically chosen for its poor quality.
Even worse are commercials that compare parts of their product to parts of others. I have no idea how many types of cars are available in the United States (and am too lazy to research that at the moment). When a vehicle commercial says their model gets better mileage than Car B as well as a better ride than Car C, and costs less than Car D, my first thought is that Cars B, C, and D must then have dozens of aspects better than the advertised vehicle.
Obviously no ad can compare the top 50 or so most important facets of an automobile (and even that would vary depending on who you talk to). That is why Consumer Reports has an annual car issue – so we can compare such things, and get our information from a mostly reliable independent source. That is why Motor Trends, Car & Driver, and dozens of other automotive magazines also provide such information.
So let’s use those magazines – “Our car was chosen best in its class by Motor Trend.” Isn’t that also using a comparison? Perhaps Car & Driver selected another vehicle. Perhaps Motor Trend select it, yet had many things to criticize. No comparison commercial will ever give you a negative report on the item being sold.
(At this point I went out to do some shopping. I passed an ad for a law firm voted “The Best in the Hudson Valley.” The best what? Voted by whom? Compared to what other law firms?)
Advertisements must remain within the bounds of the law. Even the worst product can compare itself to something else and claim to be better, stronger, healthier, tastier, or less fattening. Comparisons are simply deceptive advertising.
(Part 4 – Deception Through Comparison)
My dog’s better than your dog. (Taken from a pet food commercial in the 1970s.) That can be extended to any topic – my car, my home alarm company, my clothing line, my anything you want to buy. Comparing one item with another, whether similar or totally different, is an advertising gimmick that has been around for ages.
No matter what you compare, unless it’s an item to itself, any such action is deceitful and unfair. By law (copywrite and patent) no two products can be alike. Fords and Toyoda, Sealy and Perfect Sleeper, Coke and Pepsi. The best thing about having different products that fill in a similar nitch is that every person is unique, and our interests and likes differ.
When an advertisement uses taste tastes, or softness tests, or whatever comparison they use, you can bet the people they select for their poll are very carefully chosen. One of the criticisms placed on President Bush was that he stacked his community meetings with loyal Republicans and anyone who showed disagreement was removed from the hall. Can you imagine partisan political polls where the Republican tally only fanatical religious conservatives and the Democrats select gay-rights, pro-choice atheists? The results will be rather skewed.
So when a medicine is selected by 9 out of ten doctors, one must question whether those physicians (we assume in such cases that “doctor” = medical practitioner and not someone with a Doctorate in Engineering) have received massive amounts of that product as free samples, or whether they work for the company in question.
No poll, no sample, will ever ask all the qualified people. Political polls question perhaps a few thousand and extrapolate the results based on scientific and statistical principles. An advertising company has no such requirement. They can place their sample in tiny print somewhere in the ad, and keep it on the screen for five seconds. If they even do that much.
Nine out of ten cans prefer Friskies? Perhaps that was the only food they have been fed for the last three months and what they are used to.
Nine out of ten people prefer Blue Bonnet? Perhaps their only other choice was a product that had been specifically chosen for its poor quality.
Even worse are commercials that compare parts of their product to parts of others. I have no idea how many types of cars are available in the United States (and am too lazy to research that at the moment). When a vehicle commercial says their model gets better mileage than Car B as well as a better ride than Car C, and costs less than Car D, my first thought is that Cars B, C, and D must then have dozens of aspects better than the advertised vehicle.
Obviously no ad can compare the top 50 or so most important facets of an automobile (and even that would vary depending on who you talk to). That is why Consumer Reports has an annual car issue – so we can compare such things, and get our information from a mostly reliable independent source. That is why Motor Trends, Car & Driver, and dozens of other automotive magazines also provide such information.
So let’s use those magazines – “Our car was chosen best in its class by Motor Trend.” Isn’t that also using a comparison? Perhaps Car & Driver selected another vehicle. Perhaps Motor Trend select it, yet had many things to criticize. No comparison commercial will ever give you a negative report on the item being sold.
(At this point I went out to do some shopping. I passed an ad for a law firm voted “The Best in the Hudson Valley.” The best what? Voted by whom? Compared to what other law firms?)
Advertisements must remain within the bounds of the law. Even the worst product can compare itself to something else and claim to be better, stronger, healthier, tastier, or less fattening. Comparisons are simply deceptive advertising.
Monday, August 3, 2009
Consumer Safety & Awareness Part 29
Advertising Scams
(Part 3 – Deception Through Exaggeration)
Before you read this Blog, take a look at Fast Food: Ads vs. Reality, which shows pictures of fast food items as they were advertised along side of actual photographs. McDonald's Sausage McMuffin ad photo looks like it was before it was cooked (the English muffin is not toasted). The KFC Famous Bowl “actual” shot makes it look like something I would not feed my pets.
Before you purchase a product for the first time, any product, research reviews of it on the Internet. While it’s true that disgrumpled consumers write many reviews, and as many are actually written by the company that made the product, by reading between the lines you can get a feel for the quality, the reliability, and the cost-worthiness of the item.
Computer games are a good example. The advertising hype for the item may begin two to three years before the game is available. The reviewers are showing best-case possibilities. They are informed of what the finished product will be like. It is doubtful if the programmers are going to say that it’s a dud – they have invested millions of dollars into production. Always wait a few months before buying the game. You may land up getting version 2.5 with many of the bugs worked out. If the price falls from $49.95 to $19.95 in ten weeks, you know it’s a disaster.
Along the same lines, movie and television shows are hyped with grandiose terms: the show of the season, the best police drama on television, and this year’s huge hit. Quite a few of these absolutely perfect entertainment showpieces are off the air within four or six episodes. Sixteen million people may have tuned into the pilot show, 12 million the second week, 3 million remained around by the sixth week, and even the sponsors stopped watching soon after,
Who writes the reviews shown in the advertisements? Quite frequently it is truly the words of the reviewers. Yet there are three things you must consider:
1. Not all reviewers are sane. Quite a few liked “My Mother the Car.”
2. Some reviewers work for the television station. Do you think a reporter working for CBS is going to say a new CBS show stinks?
3. Advertisements are permitted to paraphrase or truncate a review. Consider: “This is the worst television show to come along in 20 years.” This may appear in the ad as, “The reviewer has not seen a show of this quality in 20 years.
Advertisers love superlatives: Best!!! Greatest. Sure to win awards (as the bomb of the year?). The best cereal for your heart, the best and fastest Internet connection, the best service. How about some honesty: “The biggest and most blatant exaggeration in advertising.
(Part 3 – Deception Through Exaggeration)
Before you read this Blog, take a look at Fast Food: Ads vs. Reality, which shows pictures of fast food items as they were advertised along side of actual photographs. McDonald's Sausage McMuffin ad photo looks like it was before it was cooked (the English muffin is not toasted). The KFC Famous Bowl “actual” shot makes it look like something I would not feed my pets.
Before you purchase a product for the first time, any product, research reviews of it on the Internet. While it’s true that disgrumpled consumers write many reviews, and as many are actually written by the company that made the product, by reading between the lines you can get a feel for the quality, the reliability, and the cost-worthiness of the item.
Computer games are a good example. The advertising hype for the item may begin two to three years before the game is available. The reviewers are showing best-case possibilities. They are informed of what the finished product will be like. It is doubtful if the programmers are going to say that it’s a dud – they have invested millions of dollars into production. Always wait a few months before buying the game. You may land up getting version 2.5 with many of the bugs worked out. If the price falls from $49.95 to $19.95 in ten weeks, you know it’s a disaster.
Along the same lines, movie and television shows are hyped with grandiose terms: the show of the season, the best police drama on television, and this year’s huge hit. Quite a few of these absolutely perfect entertainment showpieces are off the air within four or six episodes. Sixteen million people may have tuned into the pilot show, 12 million the second week, 3 million remained around by the sixth week, and even the sponsors stopped watching soon after,
Who writes the reviews shown in the advertisements? Quite frequently it is truly the words of the reviewers. Yet there are three things you must consider:
1. Not all reviewers are sane. Quite a few liked “My Mother the Car.”
2. Some reviewers work for the television station. Do you think a reporter working for CBS is going to say a new CBS show stinks?
3. Advertisements are permitted to paraphrase or truncate a review. Consider: “This is the worst television show to come along in 20 years.” This may appear in the ad as, “The reviewer has not seen a show of this quality in 20 years.
Advertisers love superlatives: Best!!! Greatest. Sure to win awards (as the bomb of the year?). The best cereal for your heart, the best and fastest Internet connection, the best service. How about some honesty: “The biggest and most blatant exaggeration in advertising.
Monday, July 27, 2009
Consumer Safety & Awareness Part 28
Advertising Scams
(Part 2 – Deception Through Misdirection)
Advertisers probably enjoy watching magicians as both occupations employ deception through misdirection. The magician must get the audience to focus on something so as to deceive. Flourish a hand to get the eye over there while the other hand slips the trick card into the deck. Point out the lovely assistant while slipping the key to the lock into his mouth.
Deception is the hallmark of advertising as well. Want to sell a car? Point out the lovely color, the smiling 30-somethings looking through the showroom, say something cute and totally off the subject.
How else can you explain that during the last five years we have seen countless speeding cars on hairpin turns or driving fast through streets, totally void of other vehicles? Is this likely to be the way you drive? How about some honesty – like showing the car stuck in rush-hour traffic not moving? Oh, they use that one also, but somehow the car magically lifts above all the others and is suddenly moving along an empty country lane.
Why bother telling us about the many recalls and overpriced extras they force on us when they can show cars taking off after the showroom closed and driving around town on their own, or turning on their own radios and flashing their headlights to the rhythm of the music?
Five-star crash test results – what does that really tell you about the vehicle? Talking test dummies? Direct the audience’s attention away from their sales gimmicks and on to something that will make them remember the car’s name and model. What lovely music from the radio (I’m usually tuned to the traffic reports). What beautiful leather seats, which get boiling and sticky in hot weather and never warm up when it’s cold out.
Distract us by putting an entire household’s worth of toys in the back of the 8 MPG SUV, or showing how attractive the 12 MPG sports model is to people standing on the street. Yes, I am certainly going to buy a car just so that others can admire it.
Distract us by informing us only of the few good points of your product. It can cure heartburn, but the side effects may include diarrhea, headaches, sleeplessness, and inability to concentrate, while it kills off the good bacteria that help us properly digest our food. Let us know that id we eat your cereal for eight weeks we can drop our cholesterol from 200 to 192 while absorbing more salt than we should have in a day. Tell us about the great taste but not the additives that are under investigation because they may cause cancer, stroke, heart attacks, or hyperactivity in our children.
Political ads love to use misdirection. Candidate One accuses his opponent of not caring about the cost of prescription drugs. At the end of the ad you see it was paid for by the American Pharmaceutical Association. His opponent accuses Candidate One of being soft on crime while gun manufacturers are filling his campaign chest. Did he mention that last year he sponsored an early release bill for hard-core criminals?
Remember the purpose of advertisement – to get you to buy the product, the service, the concept, or the candidate. Do you thing Pepsi is ever going to have an ad stating that their blind taste-taste found people prefer Dr. Pepper? Such a study would be quickly destroyed. Nine out of ten doctors (who happen to work as researchers for the company) prefer the product the company makes (and the tenth was fired).
I watch commercials and read advertisements just to spot the fallacies in them. I have no intention of buying advertised products as there is probably other, just-as-good or better products (a little on-line research will discover them) that charge less because they do not have a $100 million ad campaign thus adding $2 to the cost of each item they sell. Remember that national brand companies make the no-name brands (do you think Safeway cans it’s own food?), which are then sold for half the price because they do not have to pay for advertising.
Quick, watch the flame coming from the magician’s left hand – he’s going to make quality, good deals, honesty, and integrity disappear with his right one.
(Part 2 – Deception Through Misdirection)
Advertisers probably enjoy watching magicians as both occupations employ deception through misdirection. The magician must get the audience to focus on something so as to deceive. Flourish a hand to get the eye over there while the other hand slips the trick card into the deck. Point out the lovely assistant while slipping the key to the lock into his mouth.
Deception is the hallmark of advertising as well. Want to sell a car? Point out the lovely color, the smiling 30-somethings looking through the showroom, say something cute and totally off the subject.
How else can you explain that during the last five years we have seen countless speeding cars on hairpin turns or driving fast through streets, totally void of other vehicles? Is this likely to be the way you drive? How about some honesty – like showing the car stuck in rush-hour traffic not moving? Oh, they use that one also, but somehow the car magically lifts above all the others and is suddenly moving along an empty country lane.
Why bother telling us about the many recalls and overpriced extras they force on us when they can show cars taking off after the showroom closed and driving around town on their own, or turning on their own radios and flashing their headlights to the rhythm of the music?
Five-star crash test results – what does that really tell you about the vehicle? Talking test dummies? Direct the audience’s attention away from their sales gimmicks and on to something that will make them remember the car’s name and model. What lovely music from the radio (I’m usually tuned to the traffic reports). What beautiful leather seats, which get boiling and sticky in hot weather and never warm up when it’s cold out.
Distract us by putting an entire household’s worth of toys in the back of the 8 MPG SUV, or showing how attractive the 12 MPG sports model is to people standing on the street. Yes, I am certainly going to buy a car just so that others can admire it.
Distract us by informing us only of the few good points of your product. It can cure heartburn, but the side effects may include diarrhea, headaches, sleeplessness, and inability to concentrate, while it kills off the good bacteria that help us properly digest our food. Let us know that id we eat your cereal for eight weeks we can drop our cholesterol from 200 to 192 while absorbing more salt than we should have in a day. Tell us about the great taste but not the additives that are under investigation because they may cause cancer, stroke, heart attacks, or hyperactivity in our children.
Political ads love to use misdirection. Candidate One accuses his opponent of not caring about the cost of prescription drugs. At the end of the ad you see it was paid for by the American Pharmaceutical Association. His opponent accuses Candidate One of being soft on crime while gun manufacturers are filling his campaign chest. Did he mention that last year he sponsored an early release bill for hard-core criminals?
Remember the purpose of advertisement – to get you to buy the product, the service, the concept, or the candidate. Do you thing Pepsi is ever going to have an ad stating that their blind taste-taste found people prefer Dr. Pepper? Such a study would be quickly destroyed. Nine out of ten doctors (who happen to work as researchers for the company) prefer the product the company makes (and the tenth was fired).
I watch commercials and read advertisements just to spot the fallacies in them. I have no intention of buying advertised products as there is probably other, just-as-good or better products (a little on-line research will discover them) that charge less because they do not have a $100 million ad campaign thus adding $2 to the cost of each item they sell. Remember that national brand companies make the no-name brands (do you think Safeway cans it’s own food?), which are then sold for half the price because they do not have to pay for advertising.
Quick, watch the flame coming from the magician’s left hand – he’s going to make quality, good deals, honesty, and integrity disappear with his right one.
Monday, July 20, 2009
Dangers of Internet Purchasing
Guest Blog
Although it is very convenient to purchase things either over the phone or internet there are also problems that can arise. Before placing an order it is extremely important to know the specifications of the item in order to be assured that it will suit your needs. If you are unsatisfied upon receiving the product chances are you will have to pay the return shipping (and possibly a restocking fee) even if the company agrees to refund your money. In some cases you will also be out the initial shipping cost. Depending on the item this can be quite a substantial fee.
In many cases certain drawbacks may not become apparent until you actually open the box and read the instructions. This recently happened to me when I purchased an international automatic dual converter kit which I intend to use solely to recharge batteries. The instruction booklet stated that you could only keep an item plugged into a converter for a maximum of thirty minutes which is nowhere long enough to recharge a battery.
Upon calling the company I was told this was indeed the case and what I needed to get was a transformer that could be used for extended periods of time. I was quite upset and then contacted the place where I ordered it from and was told I could get a refund but would have to pay to have it shipped back.
Upon researching the item further I discovered to my delight that this particular converter acts both as a transformer at lower wattage and a converter at higher wattage and thus should be suitable for my needs. I had this confirmed by a supervisor at the company who apologized for the erroneous information that I had previously received.
Happily this turned out well but very well could have wound up costing me shipping charges and nothing to show for it.
Submitted by Roberta Rosengarten
Although it is very convenient to purchase things either over the phone or internet there are also problems that can arise. Before placing an order it is extremely important to know the specifications of the item in order to be assured that it will suit your needs. If you are unsatisfied upon receiving the product chances are you will have to pay the return shipping (and possibly a restocking fee) even if the company agrees to refund your money. In some cases you will also be out the initial shipping cost. Depending on the item this can be quite a substantial fee.
In many cases certain drawbacks may not become apparent until you actually open the box and read the instructions. This recently happened to me when I purchased an international automatic dual converter kit which I intend to use solely to recharge batteries. The instruction booklet stated that you could only keep an item plugged into a converter for a maximum of thirty minutes which is nowhere long enough to recharge a battery.
Upon calling the company I was told this was indeed the case and what I needed to get was a transformer that could be used for extended periods of time. I was quite upset and then contacted the place where I ordered it from and was told I could get a refund but would have to pay to have it shipped back.
Upon researching the item further I discovered to my delight that this particular converter acts both as a transformer at lower wattage and a converter at higher wattage and thus should be suitable for my needs. I had this confirmed by a supervisor at the company who apologized for the erroneous information that I had previously received.
Happily this turned out well but very well could have wound up costing me shipping charges and nothing to show for it.
Submitted by Roberta Rosengarten
Tuesday, July 14, 2009
Consumer Safety & Awareness Part 27
Advertising Scams
(Part 1 – You Do Not Care They are Robbing You)
To this point we have discussed techniques scammers, robbers, and other unsavory people use to get your goods and money. There is, though, not much of a chance you will encounter any of these techniques.
Yet every day you are exposed to hundreds of advertising scams. In fact a large majority of advertisements, on television, radio, newspapers, and magazines, and, especially, on the Internet, use some form of deception to convince you to purchase their product. There is even a chance you will be offered items that do not exist.
Always keep in mind that manufacturers make products and need to sell them. They do this by whatever technique they can, not always honest ones. The federal government writes laws and hires people to inspect advertisements, but laws can easily be circumvented and there are so few inspectors that unless there is a blatant violation of law or many complaints, dishonesty is rarely discovered.
Even though there are state and local consumer protection agencies, as well as dozens of foundations and private organizations (such as Consumer Reports – see below), it is far too easy to bend the law, to use misdirection, exaggeration, testimonials, or any of the dozens of semi-legal techniques to fool consumers.
And warnings do not reach the people that most need them. We are so used to advertising that we simply let them filter into our brains without any question. Every day the ten organizations listed below, and hundreds of others (including Slightly Creaky), pass alerts on to consumers. Yet such things do not sell newspapers. Consumer warnings rarely make it into TV or Radio news as these companies depend on advertising for their existence. Would they run an ad for Direct Buy (for example), collecting millions in revenue, and then have news article that there are questions about this company’s honesty?
For over two years I have been trying to get organizations in my community to let me speak to the public about advertising scams, yet only two places welcomed my overtures, and only five people signed up to attend. Are people uninterested in protecting what they have worked so hard to earn? Do they simply not care? Are they too busy watching television (and viewing advertising) to find out how they are being scammed of thousands of dollars a year?
The folks here at Slightly Creaky are at a loss to explain this apathy. If you have any thoughts or suggestions, please let us know at suggestions@slightlycreaky.com. We will post the best of these comments in a future blog.
Obviously those people who are reading this are interested in consumer fraud and misleading advertising, and probably wish to know more about this. Our weekly posts can only touch the surface and provide generalities. You can bookmark these ten web sites and visit them occasionally to get the latest consumer protection information:
Slightly Creaky’s Consumer Assistance Links: http://www.slightlycreaky.com/scams.html#ConAssist
Consumer Reports: http://www.consumerreports.org/cro/index.htm
Better Business Bureau: http://www.bbb.org/us/
Scam Busters: http://www.scambusters.org/
Scam.com: http://www.scam.com/
Federal Citizen Information Center: http://www.pueblo.gsa.gov/scamsdesc.htm
Federal Reserve Consumer Information: http://www.frbsf.org/publications/consumer/fraud.html
ScamBlog: http://www.scamdex.com/ScamBlog/
QuackWatch: http://www.quackwatch.org/
Hot Scams: http://www.hotscams.com/
(Part 1 – You Do Not Care They are Robbing You)
To this point we have discussed techniques scammers, robbers, and other unsavory people use to get your goods and money. There is, though, not much of a chance you will encounter any of these techniques.
Yet every day you are exposed to hundreds of advertising scams. In fact a large majority of advertisements, on television, radio, newspapers, and magazines, and, especially, on the Internet, use some form of deception to convince you to purchase their product. There is even a chance you will be offered items that do not exist.
Always keep in mind that manufacturers make products and need to sell them. They do this by whatever technique they can, not always honest ones. The federal government writes laws and hires people to inspect advertisements, but laws can easily be circumvented and there are so few inspectors that unless there is a blatant violation of law or many complaints, dishonesty is rarely discovered.
Even though there are state and local consumer protection agencies, as well as dozens of foundations and private organizations (such as Consumer Reports – see below), it is far too easy to bend the law, to use misdirection, exaggeration, testimonials, or any of the dozens of semi-legal techniques to fool consumers.
And warnings do not reach the people that most need them. We are so used to advertising that we simply let them filter into our brains without any question. Every day the ten organizations listed below, and hundreds of others (including Slightly Creaky), pass alerts on to consumers. Yet such things do not sell newspapers. Consumer warnings rarely make it into TV or Radio news as these companies depend on advertising for their existence. Would they run an ad for Direct Buy (for example), collecting millions in revenue, and then have news article that there are questions about this company’s honesty?
For over two years I have been trying to get organizations in my community to let me speak to the public about advertising scams, yet only two places welcomed my overtures, and only five people signed up to attend. Are people uninterested in protecting what they have worked so hard to earn? Do they simply not care? Are they too busy watching television (and viewing advertising) to find out how they are being scammed of thousands of dollars a year?
The folks here at Slightly Creaky are at a loss to explain this apathy. If you have any thoughts or suggestions, please let us know at suggestions@slightlycreaky.com. We will post the best of these comments in a future blog.
Obviously those people who are reading this are interested in consumer fraud and misleading advertising, and probably wish to know more about this. Our weekly posts can only touch the surface and provide generalities. You can bookmark these ten web sites and visit them occasionally to get the latest consumer protection information:
Slightly Creaky’s Consumer Assistance Links: http://www.slightlycreaky.com/scams.html#ConAssist
Consumer Reports: http://www.consumerreports.org/cro/index.htm
Better Business Bureau: http://www.bbb.org/us/
Scam Busters: http://www.scambusters.org/
Scam.com: http://www.scam.com/
Federal Citizen Information Center: http://www.pueblo.gsa.gov/scamsdesc.htm
Federal Reserve Consumer Information: http://www.frbsf.org/publications/consumer/fraud.html
ScamBlog: http://www.scamdex.com/ScamBlog/
QuackWatch: http://www.quackwatch.org/
Hot Scams: http://www.hotscams.com/
Monday, July 6, 2009
Consumer Safety & Awareness Part 26
Internet Service Scams
(This morning one of the Slightly Creaky e-mail accounts received over 200 Mailer Daemon rejections. Obviously the account had been hacked and used to send out spam. We deleted the mail, checked the accounts, changed passwords, then called up our web company. They could not find any trace of this e-mail, nor did it show up on their secure server. We are still working with them to trace the senders and resolve the issue.)
Most likely you have heard about Internet attacks on computers. They can take several forms, but all can be devastating. There are hundreds of sites online dedicated to computer risks. One of the most complete, yet hardest to understand, is Computer Knowledge. I have borrowed some definitions from them so that you can be more aware of the types of problems that can occur when you use the Internet. Most good anti-virus software will protect you from these, especially if you maintain the program’s automatic upgrade subscription.
a) A Dialer is a program that will use the computer's modem to dial various phone numbers. The purpose of this unauthorized dialing can vary but usually is to activate premium cost phone numbers that will show up on the infected user's phone bill or to access pornographic material.
b) Worms and viruses spread by themselves; a worm spreading by itself and a virus typically needing a host to carry it. Some worms/viruses will also carry a Trojan, making the distinction even more of a gray area.
A worm will be designed to take advantage of some known vulnerability in the operating system. Many of these will open a backdoor to the computer so other programs can be inserted or commands can be given to your computer to perform tasks you probably would not want it performing (e.g., sending bulk spam e-mails).
c) A rootkit is basically stealthed malware. Rootkits are programs that typically replace kernel programs and DLL files with improper programming. Since it's a system file that has been replaced it's much easier to mask and hide these features from anti-virus software. One major company included a rootkit in its software on purpose. If you attempted to copy their software, legally or illegally, it messed with your system. Lawsuits resulted.
d) A Trojan is a program that runs on a computer as part of or in addition to another program that an infected computer's user is running. Trojans have various functions; some attempt to download and install other infections, some download and show advertisements, some log keystrokes and send that information to locations where the user’s names and passwords are used for unethical purposes. Other Trojans open backdoors into the infected computer so that unethical people can use the infected computers to send out spam. A few Trojans are particularly malicious and attempt to disable the infected system and make data on it unavailable to its owner
No matter which of these infect a computer, the result will be unexpected and possibly unknown theft of either service or identity. It is important to use the latest anti-virus programs, updated, to protect a machine. A firewall, in addition to whatever the Internet Service Provider is using, should shut off any access from the outside. Other protection packages can reduce the risk of getting adware, pop-ups, and other unwanted programs that, at a minimum, will slow your computer down.
If you have ever had a computer malfunction, and contacted the company you purchased it from, they may have asked for your IP number and permission to gain Internet access directly to your computer. Using this technique, which we might consider legal hacking, the company’s technician can examine your setting, find out what is wrong, and possibly even remotely fix it. Imagine what a person with evil intent might do.
If your computer has been infected, you may become subject to theft of service, as the attackers can then use your computer as the base of spam-mail attacks. If federal agents trace such attacks, they will land up at your infected machine, not the scammers. Even more frightening, if you operate a business or make financial transactions from this infected machine, the hacker may be able to learn your identity and security information.
People also operate web sites from their home computers. Infected machines open the door to hackers to access those websites. At minimum they can maliciously alter or disable the site. It is possible that they can create a direct resender so that people attempting to access the site you operate land up at a scam location or pornographic page. If your web site has items for sale or other financial transactions taking place on it, the hackers can intercept them and take the credit card numbers and other information for their own use.
Thus, the more you use your computer for Internet interaction, the more you need to be aware of what is happening at your site. Many people build something then rarely return to it. Check the site you developed daily. Use whatever protection your web support and service companies provide. You may even wish to invest in a monthly or yearly subscription protection anti-virus plan. Do not just purchase one based on an ad, though. Use what your ISP recommends as best for your circumstance.
(This morning one of the Slightly Creaky e-mail accounts received over 200 Mailer Daemon rejections. Obviously the account had been hacked and used to send out spam. We deleted the mail, checked the accounts, changed passwords, then called up our web company. They could not find any trace of this e-mail, nor did it show up on their secure server. We are still working with them to trace the senders and resolve the issue.)
Most likely you have heard about Internet attacks on computers. They can take several forms, but all can be devastating. There are hundreds of sites online dedicated to computer risks. One of the most complete, yet hardest to understand, is Computer Knowledge. I have borrowed some definitions from them so that you can be more aware of the types of problems that can occur when you use the Internet. Most good anti-virus software will protect you from these, especially if you maintain the program’s automatic upgrade subscription.
a) A Dialer is a program that will use the computer's modem to dial various phone numbers. The purpose of this unauthorized dialing can vary but usually is to activate premium cost phone numbers that will show up on the infected user's phone bill or to access pornographic material.
b) Worms and viruses spread by themselves; a worm spreading by itself and a virus typically needing a host to carry it. Some worms/viruses will also carry a Trojan, making the distinction even more of a gray area.
A worm will be designed to take advantage of some known vulnerability in the operating system. Many of these will open a backdoor to the computer so other programs can be inserted or commands can be given to your computer to perform tasks you probably would not want it performing (e.g., sending bulk spam e-mails).
c) A rootkit is basically stealthed malware. Rootkits are programs that typically replace kernel programs and DLL files with improper programming. Since it's a system file that has been replaced it's much easier to mask and hide these features from anti-virus software. One major company included a rootkit in its software on purpose. If you attempted to copy their software, legally or illegally, it messed with your system. Lawsuits resulted.
d) A Trojan is a program that runs on a computer as part of or in addition to another program that an infected computer's user is running. Trojans have various functions; some attempt to download and install other infections, some download and show advertisements, some log keystrokes and send that information to locations where the user’s names and passwords are used for unethical purposes. Other Trojans open backdoors into the infected computer so that unethical people can use the infected computers to send out spam. A few Trojans are particularly malicious and attempt to disable the infected system and make data on it unavailable to its owner
No matter which of these infect a computer, the result will be unexpected and possibly unknown theft of either service or identity. It is important to use the latest anti-virus programs, updated, to protect a machine. A firewall, in addition to whatever the Internet Service Provider is using, should shut off any access from the outside. Other protection packages can reduce the risk of getting adware, pop-ups, and other unwanted programs that, at a minimum, will slow your computer down.
If you have ever had a computer malfunction, and contacted the company you purchased it from, they may have asked for your IP number and permission to gain Internet access directly to your computer. Using this technique, which we might consider legal hacking, the company’s technician can examine your setting, find out what is wrong, and possibly even remotely fix it. Imagine what a person with evil intent might do.
If your computer has been infected, you may become subject to theft of service, as the attackers can then use your computer as the base of spam-mail attacks. If federal agents trace such attacks, they will land up at your infected machine, not the scammers. Even more frightening, if you operate a business or make financial transactions from this infected machine, the hacker may be able to learn your identity and security information.
People also operate web sites from their home computers. Infected machines open the door to hackers to access those websites. At minimum they can maliciously alter or disable the site. It is possible that they can create a direct resender so that people attempting to access the site you operate land up at a scam location or pornographic page. If your web site has items for sale or other financial transactions taking place on it, the hackers can intercept them and take the credit card numbers and other information for their own use.
Thus, the more you use your computer for Internet interaction, the more you need to be aware of what is happening at your site. Many people build something then rarely return to it. Check the site you developed daily. Use whatever protection your web support and service companies provide. You may even wish to invest in a monthly or yearly subscription protection anti-virus plan. Do not just purchase one based on an ad, though. Use what your ISP recommends as best for your circumstance.
Monday, June 29, 2009
Consumer Safety & Awareness Part 25
Identity Theft Insurance
One of the most misleading, overpriced services available to consumers is insurance for identity theft. Several companies offer them, and they are certainly not worth it. They do nothing to repair your credit, only provide financial insurance in case someone steals your financial information. You are generally covered by your credit card companies and bank accounts, so additional insurance is not needed.
In the case of identity theft, the problem is not so much financial loss as it time of recovery. It may take months to convince the banks and credit card companies to release your account back to you, and whether you are insured or not, your credit rating will suffer. Go to the web sites of these companies and you’ll see comparison charts. Like automotive commercials comparing one car to another, each insurance company only lists the features in which they will be superior. If they do not match up to other companies their chart will not include that item. Thus they look good, no matter what quality of service they provide.
Privacy Rights Clearinghouse, often quoted by not only these insurance companies but others in the field, states:
“Generally, credit monitoring services cannot protect against the five kinds of fraud which we will describe below. Some more comprehensive services may be able to provide limited protection against these other types of fraud. Generally, services that claim to provide more comprehensive protection monitor online chat rooms, blogs, and news sources to look for evidence of criminal activity. However, there is no assurance that a particular fraudulent activity will become the subject of an online discussion. The ability of such enhanced services to protect you from fraud is as yet unproven. Clearly there is a tremendous amount of fraudulent activity that does not get discussed online.
In our opinion, most identity theft monitoring services are unable to provide anything close to complete protection for the following kinds of unlawful activity:
a) Existing account fraud occurs when an imposter uses your current accounts to commit fraud. For example, an imposter could use your credit card account number to make a purchase from an online vendor, or your bank account number to make a withdrawal. This is also referred to as “account takeover” fraud. You generally learn of such fraud by carefully reviewing your monthly account statements.
b) Debit or check card fraud occurs when an imposter uses your debit card or check card (or the information from your card) to remove money from your bank account. The imposter does not need to know your PIN because he or she will be able to use the card for an “off-line transaction.”
c) Social Security number fraud occurs when an imposter uses your SSN to obtain employment, for tax reporting purposes, or for other illegal transactions. For example, an undocumented worker might use your Social Security number to obtain employment or an imposter might use your SSN to avoid paying taxes on their income.
d) Criminal identity theft occurs when an imposter gives another person's name and personal information (or counterfeit documents) to a law enforcement officer during an arrest. Frequently, the imposter fraudulently obtained a driver's license in the victim's name and provides that identification document to law enforcement. Or the imposter, without showing any photo identification, uses the name of a friend or relative.
In many cases, the imposter is cited for a traffic violation or for a misdemeanor violation and is immediately released from the arrest. If the imposter then does not appear in court at the appointed date, a warrant of arrest will be issued under the victim's name. If at a later date the victim is stopped for, say, a traffic violation, he or she may be arrested because of the outstanding bench warrant.
e) Identity theft involving one’s health information (medical identity theft) occurs when an imposter uses an individual’s name and/or other information (often insurance information) to obtain or make false claims for medical goods or services. Medical identity theft may result in erroneous entries being entered into an existing medical record, or the creation of fictitious medical records in the victim’s name.
This potentially can have fatal consequences for the victim. For example, in an emergency room setting, the victim may be unconscious at the time of treatment. If the victim’s medical record reflects the imposter’s blood type, allergies, medications, or other medical conditions, health care providers may make dangerous errors.
For detailed information about identity theft, how to minimize the likelihood of becoming a victim, and ways to fix such problems without paying for expensive insurance, visit the Privacy Rights Clearinghouse at http://www.privacyrights.org/fs/fs33-CreditMonitoring.htm
One of the most misleading, overpriced services available to consumers is insurance for identity theft. Several companies offer them, and they are certainly not worth it. They do nothing to repair your credit, only provide financial insurance in case someone steals your financial information. You are generally covered by your credit card companies and bank accounts, so additional insurance is not needed.
In the case of identity theft, the problem is not so much financial loss as it time of recovery. It may take months to convince the banks and credit card companies to release your account back to you, and whether you are insured or not, your credit rating will suffer. Go to the web sites of these companies and you’ll see comparison charts. Like automotive commercials comparing one car to another, each insurance company only lists the features in which they will be superior. If they do not match up to other companies their chart will not include that item. Thus they look good, no matter what quality of service they provide.
Privacy Rights Clearinghouse, often quoted by not only these insurance companies but others in the field, states:
“Generally, credit monitoring services cannot protect against the five kinds of fraud which we will describe below. Some more comprehensive services may be able to provide limited protection against these other types of fraud. Generally, services that claim to provide more comprehensive protection monitor online chat rooms, blogs, and news sources to look for evidence of criminal activity. However, there is no assurance that a particular fraudulent activity will become the subject of an online discussion. The ability of such enhanced services to protect you from fraud is as yet unproven. Clearly there is a tremendous amount of fraudulent activity that does not get discussed online.
In our opinion, most identity theft monitoring services are unable to provide anything close to complete protection for the following kinds of unlawful activity:
a) Existing account fraud occurs when an imposter uses your current accounts to commit fraud. For example, an imposter could use your credit card account number to make a purchase from an online vendor, or your bank account number to make a withdrawal. This is also referred to as “account takeover” fraud. You generally learn of such fraud by carefully reviewing your monthly account statements.
b) Debit or check card fraud occurs when an imposter uses your debit card or check card (or the information from your card) to remove money from your bank account. The imposter does not need to know your PIN because he or she will be able to use the card for an “off-line transaction.”
c) Social Security number fraud occurs when an imposter uses your SSN to obtain employment, for tax reporting purposes, or for other illegal transactions. For example, an undocumented worker might use your Social Security number to obtain employment or an imposter might use your SSN to avoid paying taxes on their income.
d) Criminal identity theft occurs when an imposter gives another person's name and personal information (or counterfeit documents) to a law enforcement officer during an arrest. Frequently, the imposter fraudulently obtained a driver's license in the victim's name and provides that identification document to law enforcement. Or the imposter, without showing any photo identification, uses the name of a friend or relative.
In many cases, the imposter is cited for a traffic violation or for a misdemeanor violation and is immediately released from the arrest. If the imposter then does not appear in court at the appointed date, a warrant of arrest will be issued under the victim's name. If at a later date the victim is stopped for, say, a traffic violation, he or she may be arrested because of the outstanding bench warrant.
e) Identity theft involving one’s health information (medical identity theft) occurs when an imposter uses an individual’s name and/or other information (often insurance information) to obtain or make false claims for medical goods or services. Medical identity theft may result in erroneous entries being entered into an existing medical record, or the creation of fictitious medical records in the victim’s name.
This potentially can have fatal consequences for the victim. For example, in an emergency room setting, the victim may be unconscious at the time of treatment. If the victim’s medical record reflects the imposter’s blood type, allergies, medications, or other medical conditions, health care providers may make dangerous errors.
For detailed information about identity theft, how to minimize the likelihood of becoming a victim, and ways to fix such problems without paying for expensive insurance, visit the Privacy Rights Clearinghouse at http://www.privacyrights.org/fs/fs33-CreditMonitoring.htm
Tuesday, June 23, 2009
Consumer Safety & Awareness Part 24
Refusal to Pay
In a slightly less traditional sense, theft of services results when a customer refuses to pay for a service performed. This can happen in many instances from the use a professional such as a co-writer or lawyer to a medical situation. Although it would be unusual for someone to receive health services without first providing proof, at minimum, of identity, it does happen.
If you are a business owner, anyone who uses what you provide without paying is guilty of either theft of service or product thievery. Individuals can be victims as well if they ever provide assistance to someone with the expectation of receiving anything in return and are then not paid.
For example, the Texas District Attorney’s office reported the following incidents:
a) Lady takes her sick cat to the Vet but later never pays the vet bill.
b) Parent takes kid to day care but fails to pay bill for several months of day care services.
c) Man with no insurance goes to dentist for teeth cleaning, gets teeth cleaned, then fails to pay dentist bill.
d) Lady gets car repaired by mechanic at auto garage and fails to pay bill.
e) An attorney went to pickup a saddle he was having reworked. He took the saddle out to his truck to "get his checkbook". The lawyer then got in his truck and drove off without paying for the saddle. When the saddle maker called the police and they contacted the attorney, the attorney claimed the saddle maker owed him some legal fees for "advice given at the saddle shop". The lawyer even prepared a bill that same date for his services and put it under the saddle maker’s door. The sad thing is this lawyer does this to people all of the time.
While each situation has to be judged individually, after studying a number of such cases, these District Attorney’s came to a conclusion:
“The answer is always: what can you prove was the intent? If you can prove the drawer of the check did not intend to transfer the money by check (i.e., he knew he was going to put a stop payment regardless of the completion of the work), then you have a theft.
The stop payment is merely the camouflage. It may or may not be legitimate. You still have to prove what was in the mind of the drawer when the service was done. So, you obtain a statement explaining the stop payment. You look to see if the person has done this before (a history of 30 stop payments might be a clue).
You know that most of the elements are proven. The only element of them in doubt is the intent to deprive, which must be formed at or before the service was provided.”
A search on the Internet shows some examples of this problem:
a) A pilot was arraigned on three felony counts of theft of services after being accused of cheating an aviation company of more than $80,000 for chartering three private flights using a false credit card.
b) An investigation revealed a man illegally gained access to a local Internet service provider’s network and was selling that access to his customers. This illegal company has been in business for approximately two years.
c) In several cases in at least three states, after prostitutes charged men with rape when they did not pay for services given, the judges or prosecutors changed the charges to theft of services.
d) An actor was arrested after he refused to pay for an assessment on property he was interested in purchasing.
e) A municipal supervisor was convicted of having other county workers do repairs on his house while they were on county time.
f) Two men were prosecuted for arranging the phony rental of construction equipment. One was a worker at the rental company; the other was a contractor. Forging papers together, the contractor used rental equipment on his projects without paying for them.
g) A truck driver used inactive license plate on his trailers and went through the E-ZPass machines without paying for the tolls. His evasion on $4,748 in highway tolls in one state resulted in almost $30,000 in penalties. This included 633 violations in one year.
I once worked for an organization that promised me $500 a week for 20 hours of Internet development and organizational development. After ten weeks, having only received $100, I informed them that I expected to be paid what was owed. Eventually I took them to small claims court where I was granted what was owed, but since the organization dissolved was never able to collect, although the situation is still pending.
In a slightly less traditional sense, theft of services results when a customer refuses to pay for a service performed. This can happen in many instances from the use a professional such as a co-writer or lawyer to a medical situation. Although it would be unusual for someone to receive health services without first providing proof, at minimum, of identity, it does happen.
If you are a business owner, anyone who uses what you provide without paying is guilty of either theft of service or product thievery. Individuals can be victims as well if they ever provide assistance to someone with the expectation of receiving anything in return and are then not paid.
For example, the Texas District Attorney’s office reported the following incidents:
a) Lady takes her sick cat to the Vet but later never pays the vet bill.
b) Parent takes kid to day care but fails to pay bill for several months of day care services.
c) Man with no insurance goes to dentist for teeth cleaning, gets teeth cleaned, then fails to pay dentist bill.
d) Lady gets car repaired by mechanic at auto garage and fails to pay bill.
e) An attorney went to pickup a saddle he was having reworked. He took the saddle out to his truck to "get his checkbook". The lawyer then got in his truck and drove off without paying for the saddle. When the saddle maker called the police and they contacted the attorney, the attorney claimed the saddle maker owed him some legal fees for "advice given at the saddle shop". The lawyer even prepared a bill that same date for his services and put it under the saddle maker’s door. The sad thing is this lawyer does this to people all of the time.
While each situation has to be judged individually, after studying a number of such cases, these District Attorney’s came to a conclusion:
“The answer is always: what can you prove was the intent? If you can prove the drawer of the check did not intend to transfer the money by check (i.e., he knew he was going to put a stop payment regardless of the completion of the work), then you have a theft.
The stop payment is merely the camouflage. It may or may not be legitimate. You still have to prove what was in the mind of the drawer when the service was done. So, you obtain a statement explaining the stop payment. You look to see if the person has done this before (a history of 30 stop payments might be a clue).
You know that most of the elements are proven. The only element of them in doubt is the intent to deprive, which must be formed at or before the service was provided.”
A search on the Internet shows some examples of this problem:
a) A pilot was arraigned on three felony counts of theft of services after being accused of cheating an aviation company of more than $80,000 for chartering three private flights using a false credit card.
b) An investigation revealed a man illegally gained access to a local Internet service provider’s network and was selling that access to his customers. This illegal company has been in business for approximately two years.
c) In several cases in at least three states, after prostitutes charged men with rape when they did not pay for services given, the judges or prosecutors changed the charges to theft of services.
d) An actor was arrested after he refused to pay for an assessment on property he was interested in purchasing.
e) A municipal supervisor was convicted of having other county workers do repairs on his house while they were on county time.
f) Two men were prosecuted for arranging the phony rental of construction equipment. One was a worker at the rental company; the other was a contractor. Forging papers together, the contractor used rental equipment on his projects without paying for them.
g) A truck driver used inactive license plate on his trailers and went through the E-ZPass machines without paying for the tolls. His evasion on $4,748 in highway tolls in one state resulted in almost $30,000 in penalties. This included 633 violations in one year.
I once worked for an organization that promised me $500 a week for 20 hours of Internet development and organizational development. After ten weeks, having only received $100, I informed them that I expected to be paid what was owed. Eventually I took them to small claims court where I was granted what was owed, but since the organization dissolved was never able to collect, although the situation is still pending.
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