FTC FACTSfor Consumers

TELEMARKETING

1-877-FTC-HELP

FEDERAL TRADE COMMISSION FOR THE CONSUMER

www.ftc.gov

cam artists buy and sell "sucker lists" with the names of people

who have lost money in fraudulent promotions. These so called

"recovery room" operators may promise to recover the money you lost or the

prize or merchandise you never received — for a fee that they want you to pay

in advance. That's against the law. Under the Telemarketing Sales Rule, it is

illegal for recovery room operators to request or receive payment until seven

business days after they deliver the recovered money or other item to you. If a

recovery operation asks you to pay up front, don't do business with them!

Telemarketing Recovery

Scams

S

I know you've been

a victim of fraud.

I can help you get

your money back.
Facts for Consumers

How the Scams Work

Consumers who have lost money through

prize promotions, merchandise sales, and

charity drives often are placed on "sucker

lists." These lists contain names, addresses,

phone numbers, and other information,

such as how much money the consumer has

spent responding to telemarketing solicitations. "Sucker lists" are bought and sold by

unscrupulous promoters who know that

consumers who have been deceived once

are vulnerable to additional scams.

When recovery room scam operators contact consumers who have lost money to a

previous telemarketing scam, they falsely

promise that, for a fee or donation to a

specified charity, they will recover the lost

money, or the prize or product never received. The operators use a variety of

misrepresentations to add credibility to their

pitch. Some claim to represent companies

or government agencies. Some say they are

holding money for you. Others offer to file

necessary complaint paperwork with government agencies on your behalf. Still

others claim they can get you placed at the

top of a list for victim reimbursement.

The Federal Trade Commission (FTC)

repeatedly finds claims like these to be

false. While some federal and local government agencies and consumer organizations

provide assistance to consumers who have

lost money, they do not charge a fee, guarantee to get back even a portion of your

money, or give special preference to people

who file formal complaints. The fact is that

many recovery room scam operators never

file your complaint. But they may charge

exorbitant fees for providing addresses of

pertinent government agencies — addresses

that nonprofit consumer protection agencies

may offer free-of-charge or at a low cost. It

is very difficult to get your money back; the

fraudulent telemarketer who contacted you

initially is not likely to have the money

readily available or even still be in business.

Protecting Yourself

To avoid losing money to a "recovery

room" operator, take the following precautions:

)Be skeptical of people who offer to

recover money, merchandise, or prizes,

especially those who want their fee in

advance. Under the FTC’s

Telemarketing Sales Rule, it is illegal

for a recovery room operator to request

or receive payment until seven business

days after you receive the recovered

money or other item.

)Beware of individuals claiming to represent companies, consumer organizations, or government agencies that will

recover your lost money, merchandise,

or prizes for a fee or donation to a

special charity. National, state, and local

consumer enforcement agencies and

nonprofit organizations do not charge

for their services. These groups include

your state Attorney General (AG) and

local consumer protection office.

)Before you purchase any recovery

services by phone, ask what specific

services the company provides and the
Facts for Consumers

cost of each service. Ask the company

to send you written materials about its

operation. And, check out the company

with local law enforcement and consumer agencies. Ask if other consumers

have registered complaints about the

business.

)Don’t give out your credit card or

checking account numbers unless you

have a relationship with the business or

know its reputation.

If You Have A Complaint

Contact your state AG, local consumer

protection office, and the Better Business

Bureau to file a complaint. The

Telemarketing Sales Rule gives state AGs

the power to prosecute fraudulent

telemarketers who operate across state

lines.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair

business practices in the marketplace and to

provide information to help consumers spot,

stop, and avoid them. To file a complaint or

to get free information on consumer issues,

visit www.ftc.gov or call toll-free, 1-877-

FTC-HELP (1-877-382-4357); TTY: 1-866-

653-4261. The FTC enters Internet,

telemarketing, identity theft, and other

fraud-related complaints into Consumer

Sentinel, a secure, online database available

to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

March 2000

F C EDERAL RADE OMMISSION T FTC OR HE ONSUMER

1-877-FTC-HELP www.ftc.gov

Facts for Consumers