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Gov’t warns consumers about advertising scams

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Published: October 13, 2005

It’s the season for consumer scams, says an official with the Saskatchewan justice department.

One of the most common is often advertised in daily and weekly newspaper classifieds.

It is the ad that promises big returns for little work, and all from the comfort of your home.

People who run work-at-home schemes often use vague language to create expectations of a high income and secure employment. However, these jobs rarely result in real earnings, says the consumer protection branch of Saskatchewan’s justice department.

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Work-at-home promotions usually require people to buy something from the advertiser or a kit to get started. The end result is that they are stuck with goods, brochures or instructions while the advertiser receives their money.

Sometimes, the information in the kit consists of telling how to place the same ad that the advertiser originally ran.

The branch said there are other variations on the same theme:

  • Home workers stuff envelopes that they must buy, stamp, address and mail.
  • Home workers make potholders or aprons that the promoter is supposed to buy. However, the work will probably be rejected because the promoter will say it isn’t up to a particular standard.

Larry Wilson, deputy registrar with the branch, said these promotions are “not illegal, just not good things to get into. It’s on the edge. You have to demonstrate that they deliberately defrauded people.”

That’s why the department laid no charges against such advertisers in the past year.

Also, sources for the ads are hard to track because they are usually based in Toronto or Montreal.

That’s why the department is fighting back by issuing public warnings. Wilson said the branch receives two or three calls a month about the ads. They often come from rural areas or small towns where the farm economy is tight and job opportunities are limited.

Wilson said two other seasonal scams are the travelling home renovator and travel clubs. Under the home repair scheme, people may ask for an advance to buy materials to do work on their house.

“You may never see them again,” said Wilson, who noted that a legitimate repair person will have a direct sales contract licence from the province.

Under the travel club scheme, people pay a fee to get discounted vacation opportunities that may never materialize. Wilson said people should instead work with a recognized travel agency.

“Or call our office to check things out.”

The Saskatchewan consumer protection branch toll-free number is 888-374-4636.

The Alberta Justice information line may be reached toll free at 780-427-2745.

The Manitoba Justice toll-free line is 866-626-4862.

About the author

Diane Rogers

Saskatoon newsroom

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