Social media advertising is an effective way for small businesses to get the word out about their products. Unfortunately, the same goes for scams. BBB Scam Tracker has received thousands of complaints about misleading Facebook and Instagram ads. In fact, the 2020 BBB Scam Tracker Risk Report found that online purchase scams were the most common cons reported to Scam Tracker, and the category with the most victims.
As you scroll through your Facebook or Instagram feed, you may see an ad from a small business selling adorable jewelry, t-shirts, or other merchandise. The best part? Some of the proceeds from the sale will go to a charity that helps rescue animals, foster children, or support another worthy cause. Some consumers even report getting direct messages from sellers promoting the products and asking them to spread the word to friends and family. You make your purchase. But when your merchandise never gets delivered, the doubts start to build. When you contact the company about your purchase, they are suddenly unreachable or reply with an autoresponder. In reality, the product never existed. It was all a ploy to get your money.
Many of these misleading advertisements tout celebrity endorsements and promise a trial of the hottest new skin care or nutritional supplement for the minimal investment of shipping fees. What consumers report is that once they agree to the terms and conditions of these offers, they realize they have agreed to multiple monthly shipments for products in excess of $70-$100 each.
Before you sign up for these “limited time offers,” research the company online, see if there are any other consumer complaints, and read the terms and conditions you are agreeing to carefully. If you can’t find any terms and conditions, that is a red flag.
Watch out for pre-checked boxes, and make sure that you know who and where the company is that you are purchasing from.