Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Chapter 3 Section 3.3 Deception & FraudPages 101-107~People sometimes buy products that don’t meet their needs.~Products that thequality is not good.~Advertising is deceptive if it is misleading.~Most advertising provides accurate information.~Salespeople usually try to help you finda product that meets your needs.~Exaggerated claimsand misleading pricesare deceptive practices.
You’ve seen a product advertised.
~You go to the store and the salesperson tells
you the product isn’t good….that you
REALLY WANT to buy the more
expensive product….this is TRADING UP.
~It is not illegal.
~Salespeople make more money if you purchase
this “better” product.
~a sale is a sale ONLY if the price is below the
~Sometimes sales prices are deceptive.
~Prices can be deceptive.
~Manufacturer’s suggested retail price is
sometimes HIGHER than any retailer
EXPECTS to actually get for the product.
~Beware of claims of lowest prices in town
~Sometimes stores GET YOU TO COME TO
THEIR STORE by attracting you with a
product priced below cost.
~Store will lose money on this product
WITH HOPES you buy OTHER PRODUCTS.
~Items prices below cost to attract you to the
store are called a LOSS LEADER.
~This is legal…BUT…beware that the OTHER
PRODUCTS aren’t priced HIGHER then
~Designed for unfair or unlawful gain.
~Cheating the consumer
~A statement is fraud when it meets
~person making the statement knowsthe statement is false.
~purpose of statement must be to cause others to give up property that has
value (usually money).
~proving fraud can be difficult
~without written evidence or witnesses, fraud is hard to prove.
~Best protection against fraud is to AVOID IT.
~Need to learn the difference between honestanddishonest offers.
~When an offer seems to good to be true…it may be fraud.
~If you arrive at a store to buy an
ADVERTISED product and it is OUT OF STOCK or SOLD OUT…the salesperson tries to get you to buy a “better” “more expensive” AVAILABLE product.
~Baiting consumers with an advertised BUT non-existent bargain and then switching
them to purchase a more expensive product (similar to the advertised product but with more features “to meet their needs”)
~Don’t just buy the more costly item because
you came to the store ready to buy
~Example Chain letter that asked you to mail
$1 to the person on the top of the letter
and sent copies to 10 friends…telling you
that you will receive LOTS OF MONEY
~Pyramid scheme is a type of FINANCIAL FRAUD in which people PAY to
join an organization orparticipate in a financial “sure thing” money maker.
~People are PROMISED lots of money.
~In the end, the only people who make money
are the people on the TOP
~You can’t see them
~They can tell you they are calling from
a legitimate business…but are they!?
~Can’t see their body language to judge
if they are telling you the truth.
~CLUES TO LOOK FOR:
~Offer a deal too good to be true.
~Ask for your credit card orSocial Security Number to VERIFY your identity.
~You must BUY SOMETHING to get something of a greater value.
~They refuse to send you a written copy of a sales agreement…or what they are offering BEFORE you buy.
~They demand you ACT NOW or the offer will expire.
~They refuse to provide a TELEPHONE
NUMBER of ADDRESS of their
~Telephone fraud tries to PLAY ON YOUR
~They have SCRIPTS to tell them what to
do to respond to ANY SITUATIONS
they may encounter when talking to
~How to Protect Yourself From Deception & Fraud:
~Recognize it when you see it.
~Check out unfamiliar companies BEFORE purchasing anything.
~Ask questions about offers that seem too good to be true.
~Know the product or service you are buying.
~Make decisions with your head, not your emotions.
~Use your decision-making process to evaluate your options.