Consumer Product and Retail Fraud

How It Works

Consumer product and retail fraud involves scams related to the purchase and sale of goods. Fraudsters might sell counterfeit goods or use fake retail sites to steal money from consumers.

Common Methods of Consumer Product and Retail Fraud

• Counterfeit goods: Selling fake or substandard products at high prices or selling high-end products at “too good to be true” prices.
• Online auction scams: Scammers lure buyers with fake auction listings and collect payment without delivering the item.
• Retail return fraud: Individuals use various deceptive methods such as a false identity to return products for a refund, store credit, or exchange.

Warning Signs

• Deeply discounted products or offers that seem too good to be true.
• Sellers who request unusual payment methods, like wire transfers, gift cards, or cryptocurrency.
• Little to no information about the seller’s company, including no return policy or contact details.
• Receiving counterfeit goods or items that don’t match the advertised product description.
• Misleading advertising: False claims about a product’s capabilities or features.
• Non-delivery of goods: Payment made but no product received.
• Warranty and return scams: Issues with a product’s warranty or return policy deception.

Ways to Avoid It

• Research sellers: Only buy from reputable retailers and read customer reviews before making purchases.
• Be skeptical of deals: If a deal seems too good to be true, it likely is. Avoid offers that promise unusually low prices.
• Review return policies: Ensure the seller has clear return and refund policies and avoid purchasing from sites that lack transparency.

Ways to Report It

Fraudsters use counterfeit goods, online auction scams, and retail return fraud to deceive consumers into paying for products they don’t receive or that are of inferior quality.

• Contact the seller or manufacturer
  • Customer service: Reach out to the seller or manufacturer’s customer service to report the issue and seek resolution.
  • Return policy: If applicable, use the return or exchange policy.
• Report the fraud to the Federal Trade Commission (FTC)
  • Online: Visit ReportFraud.ftc.gov to report the fraud.
  • Phone: Call the FTC at 1-877-FTC-HELP (1-877-382-4357) if you prefer to file your complaint over the phone.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• Alert online retail platforms
  • E-commerce sites: If the product was purchased online, report the issue directly through the platform’s customer support or complaint system.
• Notify payment services (if applicable)
  • If you paid through a payment service, report the issue to them for potential buyer protection and fraud investigation.

Remember: Be sure to take the appropriate and effective steps to report and address consumer product and retail fraud.