Consumer Alert
No, that’s not the IRS texting about a tax refund or rebate. It’s a scam.
By
Gema de las Heras
Consumer Education Specialist
November 23, 2022
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IRS impersonators have been around for a while. But as more people get to know their tricks, they’re switching it up. So instead of contacting you about a tax debt and making threats to get you to pay up, scammers may send you a text about a “tax rebate” or some other tax refund or benefit. Here’s what to know about the new twist.
The text messages may look legit, and mention a “tax rebate” or “refund payment.” But no matter what the text says, it’s a scammer phishing for your information. And if you click on the link to claim “your refund,” you’re exposing yourself to identity theft or malware that the scammer could install on your phone.
If someone contacts you about a tax rebate or refund:
- Never click on links in unexpected texts. Don’t share personal information with anyone who contacts you out of the blue. Always use a website or phone number you know is real.
- Know that the IRS won’t call, email or text to contact you for the first time. They’ll always start by sending you a letter. If you want to confirm, call the IRS directly at 800-829-1040.
- Find the status of any pending refund on the IRS official website. Visit Where’s My Refund.
- Report unsolicited texts or emails claiming to be the IRS. Forward a screenshot or the email as an attachment to phishing@irs.gov
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If you clicked a link in one of these text or emails and shared personal information, file a report at IdentityTheft.gov to get a customized recovery plan based on what information you shared.
Even if you didn’t lose money to an IRS impersonator scams, tell us about it at ReportFraud.ftc.gov.
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Business Blog
FTC and Wisconsin aim to show deceptive timeshare exit claims the exit
By
Lesley Fair
November 23, 2022
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Many people – including older consumers – find themselves tied to pricey timeshares that no longer meet their needs. They were sold on the idea of idyllic getaways, but now need to get away from those getaways. Enter the timeshare exit industry. The concern, however, is when operators claim they can get people out of their timeshare contracts, but promise more than they deliver, often leaving consumers in an even deeper financial hole. A case filed by the Department of Justice on behalf of the FTC and by the Wisconsin Attorney General alleges that a Missouri-based outfit called Square One Development Group and a variety of affiliates and individuals have use deceptive and unfair practices to take approximately $90 million from consumers desperate to exit their timeshare contracts.
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Using glossy mailers, the defendants have invited timeshare owners to in-person “information sessions” at local hotels or restaurants where they will supposedly “Learn how to recover 100% of your timeshare’s full purchase price.” What’s on the menu? According to the FTC and the Wisconsin Attorney General, sales promotions and one-on-one pitches claiming the defendants will get people out of their timeshare contacts generally within a year or two and will recover 100% of the consumer’s timeshare purchase price – for a fee, of course.
To fill the seats, the defendants advertise that “representatives from Consumer Law Protection will explain all of your rights regarding timeshare ownership.” And who or what is “Consumer Law Protection”? The defendants say they’re “accredited by the Consumer Rights Council (CRC), an independent advocacy organization dedicated to helping timeshare owners who are looking to safely cancel or exit their timeshares . . . .” At the sessions, the defendants characterize themselves as “Proud Partners” of well-known timeshare companies. The defendants also tout an affiliation with the Better Business Bureau. The bottom line is that in their sales pitches and contracts, the defendants promise this: “Consumer Law guarantees our Service – we will get You out of Your timeshare or we will give You a complete and full refund.”
That’s what people eager to unburden themselves of timeshares are told, but the complaint suggests a much different story. The FTC and Wisconsin AG allege that even when consumers pay fees ranging from $5,000 to over $80,000, the defendants generally don’t get them out of their timeshare contracts and don’t recover 100% of their timeshare purchase price. When consumers try to get an update on the status of their case, the defendants’ Call Center employees often put them off by saying the matter is “with legal” or that COVID is delaying timeshare exits. But according to the FTC and Wisconsin AG, “In reality, Defendants simply were doing very little, if anything, to get consumers out of their timeshare contracts, regardless of COVID.” What’s more, the complaint alleges that in numerous instances, the defendants don’t honor their refund guarantees.
But what about that accreditation by the “Consumer Rights Council”? According to the complaint, it’s a sham nonprofit set up by the defendants for the sole purpose of making themselves look legit. Also alleged as bogus: those purported partnerships or affiliations with major names in the timeshare industry and the Better Business Bureau.
The complaint – which names Square One Development Group, Consumer Law Protection, LLC, Consumer Rights Council, Premier Reservations Group, LLC, Resort Transfer Group, LLC, Timeshare Help Source, and others – alleges multiple violations of federal and state law, including the FTC Act, the Cooling-Off Rule, the Wisconsin Direct Marketing Rule, and the Wisconsin Fraudulent Misrepresentation Law. Another count that merits attention: the allegation that the defendants “high pressure tactics and deceptive sales practices” are unfair practices, in violation of the FTC Act.
The case is pending in federal court in Missouri. Even at this early stage, it offers takeaways that apply beyond the timeshare arena.
Established federal and state consumer protection laws apply to the timeshare exit industry. Many consumers are struggling to make their timeshare payments. If you say you can help them exit their timeshares or get some or all of their money back, you need proof to back up your claims and you must follow through on those promises. That same long-standing principle applies to other promotions targeting consumer in financial distress.
Avoid affiliation misrepresentation. Companies cross the line when they attempt to hide their allegedly illegal practices behind “consumer friendly” names or vocabulary or by touting a false connection with other businesses or organizations.
Honor your refund promises. Especially when consumers are on the fence about making a purchase, the assurance of a money-back guarantee is a highly material representation. That’s why the FTC and State AGs have brought so many cases challenging the tactics of companies that talk a good refund game, but don’t make good on their promises.
United we stand. State and federal law enforcers are united in the fight against deceptive practices. This case is just the latest in a long line of cooperative actions aimed at protecting America’s consumers.
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Franchises, Business Opportunities, and Investments
- Real Estate and Mortgages
- Advertising and Marketing
- Advertising and Marketing Basics
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Consumer Alert
FTC squashes company claims that dietary supplements treat or prevent COVID-19
By
Colleen Tressler
Division of Consumer and Business Education, FTC
November 22, 2022
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In the FTC’s latest case targeting fake COVID-19 claims, the agency took action against Margrett Priest Lewis and the company she founded and manages, Precision Patient Outcomes, Inc. (PPO). Lewis and PPO claimed their dietary supplements, branded as COVID Resist and VIRUS Resist, could treat, prevent, or mitigate COVID-19, and that scientific evidence supported their claims. But the complaint says Lewis and PPO don’t have scientific evidence to back up their treatment, prevention, or mitigation claims.
There are no supplements proven to treat or prevent COVID-19.
When it comes to fighting COVID-19 and spotting unsupported treatment claims:
- Always talk with your doctor or healthcare professional before you try any product claiming to treat, prevent, or cure COVID-19.
- When there’s a medical breakthrough to treat, prevent, or cure a disease, you’re not going to hear about it for the first time through an ad or sales pitch on social media.
- Visit CDC.gov and the FDA.gov for the most up-to-date information about COVID-19 and available vaccines.
Now, please share what you know, and ask others to do the same.
- Learn more about COVID-related scams at ftc.gov/coronavirus
- Sign up for consumer alerts at ftc.gov/consumeralerts
- Tell us about scams you’re seeing at ReportFraud.ftc.gov
Topics
Scams
