How to Avoid Deceptive Sales Practices
Deceptive sales practices are a blight on the reputation of a particular industry. These types of tactics undermine consumer trust in security providers and the industry as a whole. Consumers can protect themselves by following a few tips and measures.
The most basic method is to ensure that you purchase from a licensed agent or company. Licensed agents will be able to show that you are dealing with a legitimate business and can be counted on to avoid deceptive practices. They should also offer you a copy of your policy within 30 to 60 days of purchase.
If you are looking to buy a new car, you may be tempted to take a look at advertisements in the media. These ads may include pictures of luxury cars. However, they might not be the most accurate representations of the actual product. Also, the images might not be accompanied by a description of the vehicle.
A trunk slammer is a popular 1970s tactic that deceived consumers into signing up for extremely expensive contracts. It is not always a good idea to rely on marketing strategies, however. To avoid being deceived, check the licensing of the company and the individual selling you the car.
The Federal Trade Commission has enumerated some common acts that are likely to be deceptive. Examples include failure to disclose pertinent facts, careless use of the word “free,” and comparative misrepresentations.
Comparative misrepresentations are a common type of sales gimmick. A manufacturer might suggest that its product is cheaper than a competitor’s. In reality, the product is usually sold at a higher price. An advertisement comparing two competing products must be fair and accurate. For instance, the ad must show the former price of the product, while indicating that the price is currently lower.
The FTC has developed Guides to deceptive price claims that set the standard for how a commission will assess the merits of a claimed price. In general, a comparison ad must contain a clear, conspicuous, and specific time period for the price to be in effect.
The Federal Trade Commission has even enumerated a number of other deceptive sales practices. Although it is difficult to know how often these tactics occur, they are widespread. Some of the more common examples include offering a freebie as part of the deal, claiming a savings without disclosing the cost of a service or product, and suggesting a product will pay for itself.
A better bet is to call an insurance provider and ask about their sales methods. You can also get a quote online. Remember, if you receive a high-pressure sales pitch, it is probably a red flag. Take your time and choose the best option for you. Even if you do end up with the best deal, you may find yourself dealing with hidden costs that reduce your capital.
If you have been ripped off, you may have a case against the insurance company. If you don’t want to file a lawsuit, you may be able to join a class action lawsuit. Alternatively, you can seek guidance from state courts.
