| ***facts*** | for Consumers |
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**Federal Trade Commission -April 1994**

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Art Fraud ***fast facts***

| - Among the most frequently counterfeited prints                are ones purportedly by famous artists such as                Salvador Dali, Pablo Picasso, Marc Chagall, and                Joan Miro.     
- Fake art prints are not sold just by fly-by-night                operators over the telephone. They also may                appear at seemingly reputable art galleries in                your own community.     
- Tell the dealer you want the sale to be                conditioned on an appraisal of the piece by an                expert of your chioce.     
- Be suspicious of promises of great investment                returns and high-pressure sales tactics. |
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| Bureau of Consumer Protection Office        of Consumer & Business Education        (202) 326-3650 |
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Every year, American consumers losehundreds of millions of dollars purchasing supposedly valuablecommodities that do not live up to their billing. You should beaware that counterfeit art prints are included in these items. Among the most frequently counterfeited prints are onespurportedly done by famous artists such as Salvador Dali, PabloPicasso, Marc Chagall, and Joan Mir�. Consumers from all walksof life are targeted in these scams. Recent FTC cases indicatethat those buying counterfeit art work include doctors, farmers,stockbrokers, housewives, and even other artists. If you are taken in by a false art sales pitch, what you get isoften much less than promised. After paying anywhere from $500 to$10,000 or more, you may get art work valued at no more than $50-- the equivalent of a poster you might buy at a museum. Many of these bogus pieces are copies of images created bywell-known artists, which are produced without the artist'sknowledge or authorization and carry a forged signature of theartist's name. Others are counterfeit art pieces produced in thestyle of well-known artists. In still other instances, the artwork is authentic but its value and investment potential are farless than what you are led to believe. 

## How the Scam Works

The scenario for trapping consumers into paying inflatedprices for counterfeit art works varies. One common tactic is tosend you a letter describing a contest or drawing giving away afree original lithograph by a famous artist. You are asked toreturn the postcard with your name, address, and phone number.Your post card probably will trigger a telephone call from thescam operator, who tries to convince you to buy a valuable workof art. The caller may claim to be offering a "fabulousopportunity" to obtain a limited-edition print that will bean "excellent investment." You may be told that afamous artist is near death and that you should buy now, sincethe value of the art work will increase after the artist's death.You will likely be offered a "certificate ofauthenticity" attesting to the genuineness of the work. And,often you are promised a trial examination period with a 30-daymoney-back guarantee. There are as many variations to this basicsales pitch as there are con artists. Fake art prints are not just sold over the telephone. They alsomay be sold at seemingly reputable art galleries in your owncommunity. You may find authentic works by contemporary artistshanging side by side with fake Dalis and Chagalls. Sometimes thedealer will pitch the print as an investment opportunity. Thedealer also may downplay the investment angle and try to sell theprint as a valuable collectible. 

## How To Protect Yourself

Although there is no foolproof way to protect yourself if youdecide to invest in art, the following suggestions may behelpful. *Get professional advice*. Counterfeit prints are often sowell produced that few laypersons can tell the real thing from afake. Therefore, it is very important to consult a reputableexpert, such as an art appraiser or museum curator, beforefinalizing the purchase of any artwork attributed to a well-knownartist. Ask the seller for specific information about the piece,including the edition size, the print medium (such as lithograph,etching, silkscreen, or woodcut), the year of publication, andthe printer/publisher -- all of which will help an expertevaluate the work. Some states have disclosure laws that requirethe dealer to give you such information. These include Arkansas,California, Georgia, Hawaii, Illinois, Maryland, Michigan,Minnesota, New York, Oregon, South Carolina, and Wisconsin. *Tell the dealer you want the sale to be conditioned on anappraisal of the piece by an expert of your choice*. Makesure that you have the right to get your money back in case thework is found to be a fake. Be sure to read the fine print. Somesales invoices only give you the right to exchange your print foranother and do not provide a money-back guarantee. *Be extremely careful about buying art work over the telephone*.It is very difficult for consumers to gauge the value andauthenticity of a work of art or the credentials of an art firmby telephone. You may want to check with your local or stateconsumer protection agencies, the Better Business Bureau, or yourstate Attorney General to determine whether complaints have beenlodged against the company contacting you. Be aware, however,that many fraudulent telemarketing companies frequently changetheir names, so there may be no complaints registered againstthem. *Be skeptical of authenticity claims*. Art dealers oftenprovide "certificates of authenticity" or writtenappraisals with the prints they sell to support their claims ofauthenticity. You should be wary of any art dealer who refuses toput his authenticity claims in writing. Keep in mind, however,that such documents are only as reliable as the firm that backsthem. Don't be taken in by dealers who refer you to "artappraisers" who are on the dealer's payroll. *Be suspicious of promises of great investment returns andhigh-pressure sales tactics.* Fraudulent offers often revolvearound the idea that, unless you act now, you will be passing upa terrific investment opportunity. But remember -- no offer is sogood that it cannot wait for a cool professional examination. Askyourself: if this offer is so good, why is a total strangermaking the effort to sell me this investment? *Do not give out your credit card number over the phone or bymail*. Without your credit card number, salespeople haveminimal access to your money. They may say they need your cardnumber for "verification purposes" and not for payment.Be careful. You risk big losses when you give your credit orcharge card numbers or other personal information (such as bankaccount numbers) to unfamiliar salespeople who make unsolicitedcalls. 

## What to Do If You Have Problems

If you buy a work of art and discover that it is a fake, firsttry to resolve your dispute with the company that sold you thepiece. If you are not satisfied, contact your local consumerprotection agency, Better Business Bureau, or state AttorneyGeneral to report the company. You also can contact the NationalFraud Information Center at 1-800-876-7060 (9:00 am - 5:30 pm,EST, Monday - Friday). The Center will forward your complaint to the Federal TradeCommission, Washington, D.C. 20580. Although the FTC generallydoes not intervene in individual disputes, the information youprovide may help establish a pattern of law violations by acompany that could result in legal action by the FTC. 

## For More Information

For more information about telephone scams or other consumerprotection issues, contact: Public Reference, Federal TradeCommission, Washington, DC 20580; 202-326-2222. Ask for a freecopy of **Best Sellers**. 1/91