Protecting Consumers From Deceptive Sales
Deceptive sales practices in the security industry have been around for a while. But the alarm industry has made some strides in increasing consumer awareness and punishing companies. In addition, the National Association of Insurance Commissioners (NAIC) has put out a set of helpful tips to protect consumers from deceptive sales tactics.
The first step in understanding the merits of deceptive sales is to understand what deception actually is. A representative may not deliberately mislead a purchaser, but there are instances when a seller may not have been on the up and up. It is a good idea to investigate any representation, particularly when the product is sold by a licensed agent. You may be surprised to learn that some of the most popular representations are not as they seem.
Some acts and practices that are likely to be deceptive include announcing a product that is not for sale, claiming an unusually high price for a product, or making an omission that can mislead a consumer. Another common occurrence is a bait and switch. This is a situation where a sales representative uses a low cost for a product and then increases it at a later date. Other possible tactics include hiding hidden fees, reducing the amount of capital available for return on investment, and a host of other practices.
One of the most important things to know about deceptive sales is that these practices are not limited to the security industry. They can also occur in any line of insurance. If you are unsure about whether you have purchased an insurance policy from a legitimate firm, contact the company and ask. Your agent will be able to tell you whether the company is licensed or not. Moreover, you can always file a complaint with your local Better Business Bureau.
The FTC Act is a federal law that prohibits unfair or deceptive conduct. Specifically, the Act prohibits the use of false or misleading information. While the specifics of this law are complex, the FTC has developed a set of rules and guidelines that can help you determine if an act or practice is deceptive. These guidelines can be found in section 40113.
According to the FTC, the best way to spot deceptive sales is to watch out for a few key elements. First, you should be sure that your representative is properly licensed. Additionally, you should avoid high-pressure sales tactics. Finally, you should be certain to get a copy of your policy before you sign anything. Make sure that the policy covers the product that you are considering purchasing.
Several industries have been accused of deceptive sales practices, including the life insurance industry. However, you can make sure that you are protected from fraudulent or unfair practices by checking the credentials of your insurance agent and by following some of the other tips from the National Association of Insurance Commissioners. And, if your agent is in the wrong, it is never too late to take legal action.
