Consumer Alert
What’s legit and what’s a scam?
By
Jim Kreidler
Consumer Education Specialist
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People make up lots of stories about why you need to send them money. They might say you’ve won a prize, your family member is in an emergency, or that they love you. And in all these examples, they now need you to send them money. But how do you know what’s a scam and what’s legit, especially when you think it’s someone you know and care about asking? Read on to learn one of the surest ways to spot a scam.
Scammers want your money, in a hurry, and they don’t want you to be able to get it back. But a clue to spotting and stopping these scammers is knowing how they ask (or tell) you to pay. Listen for anyone who insists you pay one of these ways. If they do, chances are they’re a scammer:
- Gift cards: Gift cards are for gifts, not payments. They’re popular with scammers because once you give the gift card PIN to someone, it’s like you just handed over cash. Gift cards also give you fewer protections, compared to other payment options.
- Money transfer: When you wire money through a company like Western Union or MoneyGram, it’s easy for a scammer to take your money and disappear. Wiring money is also like sending cash — once the scammer has it, you probably can’t get it back.
- Cryptocurrency: Real companies or government agencies will never demand that you pay with cryptocurrency. And they’ll never say to buy crypto to sort out a problem or protect your money. And no utility company will demand payment in crypto. Who does any of that? Scammers.
How Scammers Tell You To Pay
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Consumer Alert
Is your eye doctor violating the Contact Lens Rule?
By
Colleen Tressler
FTC, Division of Consumer and Business Education
The FTC recently sent 24 cease and desist letters to eye doctors after getting reports they may have violated the Contact Lens Rule by ignoring important rights of patients. That includes the requirement that eye doctors must give you a copy of your contact lens prescription at the end of a lens fitting — whether you ask for it or not — at no extra charge. This means you don’t have to buy your lenses from your eye doctor and lets you use your prescription to comparison shop among contact lens sellers for the best deal.
Here’s how the process is supposed to work. If your eye doctor is willing to sell you lenses, that means your fitting is complete and you should get a copy of your prescription. Just know that a fitting may take more than one appointment and often involves a fee that’s separate from the eye exam charge.
What’s more, your eye doctor:
- should ask you to sign a confirmation that you got your prescription
- can’t make you pay for your prescription, although they may require you to pay for the contact lens examination and fitting fee or show proof of insurance, which is considered payment
- can’t say you have to buy contact lenses from them or tell you to sign a waiver or release in order to get your prescription
If you think an eye doctor is violating the Contact Lens Rule, report it to the FTC at ReportFraud.ftc.gov.
Watch and share this video about your eyewear prescription rights:
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For more information, see Buying Prescription Glasses or Contact Lenses: Your Rights.
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Business Blog
FTC warns eye doctors that they may be violating the Contact Lens Rule
By
Colleen Tressler
In response to reports that some eye doctors may be violating the Contact Lens Rule, the FTC recently sent cease-and-desist letters to 24 prescribers’ offices reminding them of their legal obligations.
The FTC’s Contact Lens Rule ensures that patients receive a copy of their contact lens prescription when they complete a contact lens fitting with their eyecare professional. The Rule requires prescribers to give patients a copy of their prescription after completing a fitting even if the patient doesn’t ask for it and even if the prescription hasn’t changed.
The purpose of the Rule — which is governed by the Fairness to Contact Lens Consumers Act — is to allow people to comparison shop when buying prescription contact lenses. The Rule has been in place since 2004, and was amended in 2020, but the FTC continues to get reports about some eyecare professionals who are not following the law. The letters also remind prescribers that, under the Rule:
- they can’t charge for prescriptions and can’t require patients to buy contact lenses or sign waivers as a condition of providing a copy of the prescription;
- they may require patients to pay for their eye exam and fitting before giving the patient a copy of the prescription, but only if the prescriber also requires immediate payment from patients whose exams reveal no need for contacts. Proof of insurance coverage for service is deemed to be payment;
- when they prescribe private label lenses, they must include the name of manufacturer, trade name of private label brand, and, if applicable, trade name of equivalent brand name. This requirement ensures that consumers have the information they need to comparison shop for the prescribed contact lens or one “identical” to the prescribed lens; and
- if they have a direct or indirect financial interest in the sale of contact lenses, they must ask their patients to sign an acknowledgement confirming they received their prescription.
The letters to certain prescribers include warnings about the following obligations when they receive requests from third-party sellers:
- when a prescriber responds to a third-party seller’s request for prescription verification, they must not provide a general denial. If the prescription is inaccurate, expired or otherwise invalid, the prescriber must specify the basis for the inaccuracy or invalidity of the prescription and, if it is inaccurate, the prescriber must correct it; and
- when a prescriber receives a request for a copy of a prescription from a third-party seller, the prescriber must either provide the prescription or indicate that it is no longer current or valid within forty business hours of receipt of the request.
In some of the letters, FTC staff raised concerns about reports that the prescribers also may have violated the Eyeglass Rule. That Rule requires prescribers to provide eyeglass prescription at the end of refractive eye exams, and prohibits prescribers from charging for the prescription or making patients buy eyeglasses.
The letters inform prescribers that they should review the Rules and must comply with their requirements, and advise that failure to comply could result in legal action and financial penalties of $50,120 per violation.
Focusing on the requirements of the Rules? Read The Contact Lens Rule: A Guide for Prescribers and Sellers, FAQs: Complying with the Contact Lens Rule, and Complying with the Eyeglass Rule for more information. The FTC also has advice for people who wear contacts or glasses to help explain their rights under the law.
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For Release
New FTC Data Show Consumers Reported Losing Nearly $8.8 Billion to Scams in 2022
Reported fraud losses increase more than 30 percent over 2021
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Newly released Federal Trade Commission data shows that consumers reported losing nearly $8.8 billion to fraud in 2022, an increase of more than 30 percent over the previous year.
Consumers reported losing more money to investment scams—more than $3.8 billion—than any other category in 2022. That amount more than doubles the amount reported lost in 2021. The second highest reported loss amount came from imposter scams, with losses of $2.6 billion reported, up from $2.4 billion in 2021.
The FTC received fraud reports from 2.4 million consumers last year, with the most commonly reported being imposter scams, followed by online shopping scams. Prizes, sweepstakes, and lotteries; investment related reports; and business and job opportunities rounded out the top five fraud categories.
The FTC’s Consumer Sentinel Network is a database that receives reports directly from consumers, as well as from federal, state, and local law enforcement agencies, the Better Business Bureau, industry members, and non-profit organizations. Twenty-three states contribute data to Sentinel.
Sentinel received more than 5.1 million reports in 2022; these include the fraud reports detailed above, as well as identity theft reports and complaints related to other consumer issues, such as problems with credit bureaus and banks and lenders. In 2022, there were over 1.1 million reports of identity theft received through the FTC’s IdentityTheft.gov website.
The FTC uses the reports it receives through the Sentinel network as the starting point for many of its law enforcement investigations, and the agency also shares these reports with approximately 2,800 federal, state, local, and international law enforcement professionals. While the FTC does not intervene in individual complaints, Sentinel reports are a vital part of the agency’s law enforcement mission.
A full breakdown of reports received in 2022 is now available on the FTC’s data analysis site at ftc.gov/exploredata. The data dashboards there breakdown the reports across a numbers of categories, including by state and metropolitan area, as well as exploring a number of subcategories of fraud reports.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Consumer Alert
So what’s the deal with “home warranties”?
By
Kira Krown
Consumer Education Specialist
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When big things in your home break — like your dishwasher or air conditioning system — they can cost lots of money to fix. Some people buy “home warranties” (which are really service contracts) to help cover these costs. But what exactly is a so-called home warranty?
There are different types and options depending on the company and amount you pay, but home warranties typically cover replacements and repairs for things like appliances or air conditioning systems. They last for a set amount of time and — unlike builder warranties for new homes, or warranties included with some products — they cost extra.
And after looking at the details, you may find that a home warranty duplicates coverage you already have. Or covers only part of a product. Or makes it nearly impossible to get repairs done when you need them.
So here are some things to think about before committing to a home warranty:
- Is it likely to save you money? Consider both the upfront cost and costs that may be hidden, like deductibles or fees you need to pay each time products are serviced.
- What are the limitations? Are there limits on the amounts you can be reimbursed? Is accidental damage covered? Are certain appliances or systems not included? Are there restrictions or fees for cancellation?
- Does the claims process seem difficult or slow? Waiting a long time to get paid back can reduce the value of having coverage.
- Does the company have a good reputation? A home warranty is only as good as the company responsible for coverage. Search for the name of the company and words like “review” or “complaint” to see if people have had issues in the past.
Learn more: Extended Warranties and Service Contracts.
Getting unwanted calls about service contracts? Those might be telemarketers looking for your money or personal information.
If you’ve had a bad experience with your home warranty, tell the FTC: ReportFraud.ftc.gov.
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