We are pleased to continue our partnership with The Federal Trade Commission to help educate consumers and entrepreneurs about coupon related Internet scams.
Consumers and potential investors are urged to access our new web site at www.cents-off.com before getting involved with any "Business Opportunity" involving coupons.
Facts About Coupon Fraud
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 fraud 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 brand, size, and quantity of the product specified by the coupon. If submitted 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 obtained for use in frauds?
They are stolen or otherwise obtained from newspapers that carry coupon inserts; from magazine wholesalers; from newspaper vending machines, and from recycling centers. They also are collected in other ways for example, from members of organizations such as 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 also have been several cases of coupons being counterfeited.
I have been asked to buy or sell
Coupons as a business opportunity.
What should I do?
This is not a legitimate opportunity.
1. Do not confront the con artist! Your physical well being is more important than any money that may be stolen from you.
2. Save everything! Make sure that you retain any agreements, training materials, invoices, notes, and any other documents or correspondence that you have sent or received from the con artist. If possible, retain the envelopes that were used to send these materials.
Contact the CIC. Our phone number is (703) 684-5307. We can put you in touch with the appropriate law enforcement officials in your area.
Exercise Caution. Since con artists often exchange lists, someone else may obtain your mailing address and attempt to defraud you.
Just say "No." There are no legitimate business opportunities in selling coupons. You may inadvertently get involved in illegal criminal activities. Be polite and do not get confrontational. Your safety should be your number one concern.
Do not pay an advance fee. Some con artists are so brazen they charge their victims a fee supposedly for instructions on how to make money by selling coupons. This is just another way to get your money.
Consumer and Corporate Protection
A Corporate Responsibility
Manufacturers should recognize their corporate responsibility to fight coupon fraud. Many such manufacturers work through the CIC with Federal, State, and local law enforcement agencies to combat this problem. These proactive manufacturers understand the vital need to protect consumers, as well as their own corporations and shareholders, from the illegal activities of scam artists and criminal organizations.
Coupon fraud is an industry-wide challenge that is best addressed by proactive companies dedicated to protecting both their customers and their own bottom lines.
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 at www.ftc.gov.
Facts About-
The Coupon Information Corporation
115 South St. Asaph Street, Suite D
Alexandria, Virginia 22314
(703) 684-5307
The Coupon Information Corporation (CIC), a not-for-profit association of consumer product manufacturers that issue coupons, was formed in 1985 to encourage integrity in the coupon redemption process and to advocate and support law enforcement investigations of suspected coupon misredemption.
According to estimates of industry analysts, manufacturers that issue coupons suffer losses in excess of $500 million annually due to coupon fraud.
The CIC operates the Coupon Information Center in Alexandria, Virginia.
The Center serves as a central point from which law enforcement officials can obtain information from manufacturers. Under guidelines established by the manufacturers, the Center's activities with regard to its law enforcement liaison functions are limited to the computerized processing of data and communications with public officials.
Since the Center began operations in late 1986, it has encouraged and/or supported coupon misredemption inquiries in scores of States and localities. More than 300 individuals and organizations have been successfully prosecuted for coupon fraud in actions in which the CIC has provided supporting information. These individuals were responsible for more than $250 million in fraudulent coupon submissions.
As of this date, every individual prosecuted for coupon fraud as a result of CIC efforts has pleaded guilty or been convicted; not one has been acquitted.
You can contact Bud Miller, CPP at (703) 684-5307 for more information.
Copyright, 2000 Coupon Information Corporation
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