'Net cramming victimizes small firms, organizations

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Cramming has shown an increase despite a Senate committee hearing on the problem|ret||ret||tab|

Last fall, U.S. Sen. Kit Bond, as chairman of the Senate Committee on Small Business, held a hearing on Internet cramming a deceptive telemarketing scam targeting small businesses and nonprofit organizations. |ret||ret||tab|

Since then, a General Accounting Office report shows that while some gains are being made in a crackdown on these schemes, 15 states, including Missouri, reported increased cramming activity, according to a Feb. 17 release from Bond's office. |ret||ret||tab|

Internet cramming occurs when Web companies place charges on a business's phone bill during a free-trial period. |ret||ret||tab|

The providers often bill repeatedly even after the customer cancels the service, according to information from Bond's office.|ret||ret||tab|

In most of these schemes, cramming artists offer to design, set up and host Web sites for little or no money on a no-obligation basis. |ret||ret||tab|

These services are sold by telemarketers as a "no-risk, free trial." |ret||ret||tab|

In many cases, services billed to the victims are never delivered at all or may be billed month after month, even though the customer canceled the service during the free trial period. |ret||ret||tab|

Often, fees charged for services offered are higher than promised and may be placed directly on the victim's phone bill. In reality, the buyer often gets limited, poor quality service or may be billed for extra services that were never ordered. |ret||ret||tab|

In some cases the sites provided are not listed on major search engines, making them virtually useless to the small business attempting to attract customers. |ret||ret||tab|

Victims of Internet cramming who testified at last fall's hearing included two people from Missouri, a representative of the First Baptist Church of Mexico, Mo., and the office manager of an auto sunroof installation business.|ret||ret||tab|

The church officials were unaware that they were the victims of cramming until contacted by the staff of the Small Business Committee.|ret||ret||tab|

Unnoticed by church officials, Web site charges appeared on their telephone bill for approximately nine months. the witness said the phony Web site is vastly inferior to the church's official Web site, which is maintained free of charge.|ret||ret||tab|

The office manager of the auto sunroof business said the company accepted an offer for the free Web site, but when company officials received and reviewed the Web site package, they immediately canceled the service because of its poor quality.|ret||ret||tab|

Despite promptly canceling, the business incurred phone charges for the next two months.took nine more months to receive credit for the charges.|ret||ret||tab|

And the problem is growing.Federal Trade Commission and the Federal Communications Commission received a total of 1,027 consumer complaints about unauthorized, misleading or deceptive charges appearing on their telephone bills in 1996.|ret||ret||tab|

However, by 1998, such charges, by then identified as part of cramming schemes, had increased to an estimated 34,000, roughly a 3,000 percent increase in just two years.|ret||ret||tab|

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Avoid |ret||ret||tab|

Cramming|ret||ret||tab|

Just say no to deals that sound too good to be true.|ret||ret||tab|

Be wary of services offered "free of charge," "at no obligation" or for a "free trial period."|ret||ret||tab|

Review telephone bills promptly and thoroughly look for Internet service charges under New Charges, Itemized Charges or Miscellaneous Charges and Credits.|ret||ret||tab|

Do not pay for services that you did not order. Call you local telephone company immediately to dispute any unauthorized charges.|ret||ret||tab|

Be aware that charges for services unrelated to your telephone service may be included on your telephone bill.|ret||ret||tab|

Look for recurring monthly charges that may have vague descriptions, such as "Web site" or "Internet service," and call your local telephone company regarding any charges you do not understand.|ret||ret||tab|

Educate employees on how to handle high-pressure sales tactics.|ret||ret||tab|

Direct all telemarketing calls to an employee who has authorization to purchase goods and services for your business.|ret||ret||tab|

Document all purchases from telemarketers.|ret||ret||tab|

Call the Federal Trade Commission at 877-FTC-HELP if you believe your business is a victim of cramming.[[In-content Ad]]