Board Accuses Firm of Scamming Once-Bitten Consumers

Share this content:
The New York Consumer Protection Board is investigating a company it has accused of using telemarketing to sell a privacy protection service to victims -- many of them elderly -- of a previous scam.


The Senior Advisory Council, Phoenix, is telemarketing "protection plans" to consumers for $247. But officials from the Consumer Protection Board announced over the weekend that they think the company is using a list of victims who lost up to $350 earlier this year to a fictitious Toronto company called Consumer Alliance.


"They've obtained, through some means, a list of victims of another telemarketing scheme," said Jon Sorenson, spokesman for the Consumer Protection Board. "We'd like to know how it is they came by it."


Board chairwoman C. Adrienne Rhodes accused the Senior Advisory Council of obtaining its list from someone involved in the Consumer Alliance scheme. Marketing to that list is "an outrageous attempt to victimize these senior citizens a second time," she said.


A call to the Senior Advisory Council was not returned yesterday. The company's president, Edward Longoria, sent a statement to The New York Times and The Associated Press over the weekend disavowing any connection to Consumer Alliance.


But New York officials said there are several indications that the Senior Advisory Council has a relationship with the earlier scam.


Starting last summer, Consumer Alliance offered consumers low-interest credit cards or a credit card protection package for a fee. However, consumers only received brochures and stickers, the Consumer Protection Board said.


Now, many of those who fell for the Consumer Alliance scam are being solicited by the Senior Advisory Council, the Consumer Protection Board said. The company's telemarketing agents, who often posed as investigators, promised to aid consumers in stopping telemarketing calls from reaching their homes and in some cases mentioned the Consumer Alliance scam by name, the Consumer Protection Board said.


But many services offered by the Senior Advisory Council, such as placement on the Direct Marketing Association's Telephone Preference Service do-not-call list, are available to consumers for free.


They also sent stickers to consumers -- bearing the words "useless if stolen" -- for placement on credit cards, similar to the stickers sent by Consumer Alliance.


The company also portrayed itself as being the only way to get on the state's do-not-call list, the Consumer Protection Board said.


Board officials demanded that the company halt its campaign in New York, make it clear in its sales message that registration for the state DNC list is free and turn over any records related to the Consumer Alliance victims.


However, in his statement, Longoria said his company's services provide value and fill a customer need. While some of the services are available for free, few consumers take the time to take advantage of them on their own, he said.


Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here