Statement of Bud Miller, CPP - CIC Operations Manager On behalf of the Coupon Information Corporation, I want to express our deep appreciation to the United States Postal Inspection Service for deciding to investigate this case and The United States Attorney’s Office for pursuing the matter. We applaud their work and look forward to a successful prosecution of the suspects. The working poor, entrepreneurs, consumers, and even charity groups—hard working folks who are just trying to get ahead—often suffer the most from the scams that prey on their hopes and dreams. Many of these victims are those who can least afford it. The CIC is committed to continuing our support of Federal, State, and local law enforcement authorities to fight coupon fraud across the country and the Internet. In support of this effort I am pleased to announce that this morning, the Center will send educational messages to more than 150 E-mail addresses associated with Internet sites many of which appear to be engaged in activities similar to some of those described in today’s indictment. Who gets hurt by coupon certificate booklet scams? There are many losers in coupon certificate booklet scams. In general, it is those who can afford it the least that lose the most. For example: The elderly, who thought they could supplement their retirement income; The poor, who wanted to become financially independent; Charities, which were trying to raise funds; Hardworking teenagers, who unwittingly sold worthless coupon certificate booklets to their neighbors; Consumers, looking for a deal; and Any others who have put their trust in the scam. Some of the biggest losers may be the scam’s own distributors, many of whom may have paid thousands of dollars to participate in the organization. What is CIC doing about these scams? The CIC has been working with the U.S. Postal Inspection Service, The Federal Trade Commission and other law enforcement authorities across the country to identify and prosecute these and other coupon related scams. The CIC also strives to help educate consumers and web site administrators about Internet Coupon Scams through its "Surf Day Program" with the Federal Trade Commission. How can ordinary people protect themselves from con artists? Consumers can ask questions and take steps to avoid being ripped of by con artists: The most basic question to ask is "Is this too good to be true?" If you have any doubts whatsoever, do more research. You will probably find out that it IS too good to be true. Claims of unlimited income, big gains through little work, for fantastic savings should be carefully reviewed before sending in any money. Of course "Get Rich Quick" scams should probably be entirely avoided. Never underestimate the value of common sense. Coupon certificate booklet scams are a perfect example. Why pay for an expensive certificate booklet; fill out complicated forms; pay for additional handling fees and postage to get the same coupons that manufacturers give to consumers for free? It just doesn't’t make sense. If you have been ripped off in the past, you should take even greater care as con artists will sell your name, address, and other personal information to other scam artists who will try to take advantage of you. The Federal Trade Commission’s Bureau of Consumer Protection can provide consumers with valuable information about these scams. The FTC can be reached at (202) 326-3650 or you can access their web site at www.ftc.gov. How much fraud is there? No precise studies are available. However, industry sources estimate that losses due to coupon fraud exceed $500 million annually. The CIC has successfully worked with law enforcement officials on individual coupon misredemption cases ranging from a few thousand dollars to more than $87 million. When does a fraud occur? A coupon is valid only when presented by a consumer to a retailer in conjunction with a purchase of the product of the brand, size, and quantity specified by the coupon. If employed in any way other than that detailed by the issuing manufacturer, a misredemption occurs. Misredemptions can constitute a violation of Federal and/or State law. How are coupons that are used in frauds obtained? They are stolen or otherwise obtained from newspapers which carry coupon inserts; from magazine wholesalers; from newspaper vending machines, and from recycling centers. They also are collected in other ways -- from members of organizations ranging from church groups and other charities that are paid to collect and cut the coupons. There are even companies that advertise that they purchase pre-cut coupons. There have also been several cases of coupons being counterfeited. Manufacturers who recognize their corporate responsibility to fight coupon misredemption issues generally work with Federal, State, and local law enforcement agencies through the CIC to face these difficult challenges. These pro-active manufacturers understand the vital need to protect consumers and their corporations from the illegal activities of organized criminal organizations. The CIC is a Not-For-Profit association of consumer product manufacturers dedicated to fighting counterfeit coupons, misredemption, and fraud. Address: 115-D South Saint Asaph Street, Alexandria, Virginia 22314  |  E-mail: ersalexandria@msn.com Designed, Maintained, and Copyrighted by HRTec, Inc. © 2005-2008.