Buyer Beware: Web Supplement Scams

(CBS)  Surfing the internet comes with its hassles - like those advertisements that pop up all the time.

Many try to catch you eye with trial offers. But in the case of one diet supplement - its deal could have you losing a lot more than just a little weight, as CBS News correspondent Kelly Cobiella reports in conjunction with Business Week

You've probably seen the ads. They're the latest miracle supplements - acai berry, resveratrol, colon-cleansers - all promising to make you feel better, look better, live better, with news reports that seem to back up the claims.

(For more, read Business Week's report, Resveratrol: The Hard Sell on Anti-Aging.)

"My wife thought it would help with the weight," said John Lawless, a scam victim. "We're open to trying things - nutritional supplements, things like that."

Lawless says the news reports helped sway him and the price was right: 99 cents for a trial offer of resveratrol ultra.

But instead of one bottle, he was sent three, at a price of 99 cents for the first one and more than $87 for each of the other two.

When he called the company, he was told that the trial offer automatically turned into a monthly subscription after 15 days. It was all, the company said, in the fine print.

"Must be very fine print," said Lawless, who said he felt he had been scammed, "to put it mildly."

"The scam is once they have the credit card number they proceed from shipping and handling to monthly orders and billing you month after month," said Mike Galvin of the Better Business Bureau.

Galvin has received more than 3,000 similar complaints so far this year. "It's one complaint after another," he said.

And for each one, he says, there are many more customers who don't even bother to register a complaint. The company behind the resveratrol ads, FWM Labs, has an "F" rating.

"An F is a flag, an F is a failure. An F is the lowest grade that you can possibly have and that should be a sign to the public not to deal with that company," Galvin said.

The problem is customers don't know who they're dealing with. The company has dozens of Web sites but none of them are registered to FWM. Internet security expert Alex Stamos says it's not how a reputable company would operate.

"I'm guessing it's a very important part of their business model to stay ahead of the customer complaints and stay ahead of people being able to figure out who they are," Stamos said.

It took CBS News a while, but we finally tracked down FWM at a warehouse in Hollywood, Fla. where dozens of workers were processing, packing and shipping out pills as fast as the labels would print.

"We have a customer service center," said Brian Weiss, FWM's 29-year-old CEO. "If we have complaints we contact the customer immediately."

But we spoke to dozens of customers who found it next to impossible to get through to FWM. Many vented their frustrations on online forums like complaintsboard.com, calling FWM's business a "fraud" and a "rip-off." A Google search for "FWM" turns up page after page of such complaints.

"We've sold to million and a half customers since November," Weiss said. "So in the overall picture, the number of complaints seems high, but it's low when compared to the number of orders we've shipped out."

In fact, FWM is one of the most complained-about companies in the nation. The Florida Attorney General is investigating the company and the Federal Trade Commission is looking into the marketing tactic they - and companies like them - use. News organizations including CBS have tried to get FWM and others to stop misusing their reports to sell products.

As for John Lawless, he returned all three bottles of resveratrol ultra unopened. A phone representative told him he'd receive a full refund for the bottles.

FWM did send him a refund - for a single bottle.


More on Avoiding Internet Scams

Federal Trade Commission fact sheet on dietary supplements (PDF). The fact sheet deals both with the fact that commercially marketed supplements may be ineffective or even dangerous and with sellers' unscrupulous marketing practices. It reminds consumers to deal only with companies that have a listed name, address and phone number and to "Get all promises in writing and read all paperwork before making any payments or signing any contracts. Pay special attention to the small print."

FBI tip sheet on Internet fraud.

National Consumer League page on Internet fraud.

Center for Science in the Public Interest article (PDF) about Internet scams, particularly those promoting acai berries for weight loss. The article exposes the marketers' use of fake blogs by supposed working mothers (really just marketing text with stock photos of models) and misappropriation of celebrity endorsements and product reviews.

New York Times article discussing unsubstantiated health claims about acai berries and consumer complaints about shady online selling practices.

Better Business Bureau article on supplement scams, mentioning specific companies to avoid.

Better Business Bureau general tips for shopping online.

Better Business Bureau page on FWM - read about the company's track record or file a complaint.

Consumer Reports blog about resveratrol and acai berry scams.

Florida Attorney General's page on investigation of FWM.

The Nutrition Business Journal.

Complaintsboard - a site to share experiences with other Web users and get advice on dealing with online businesses.

Ripoff report - another site where users can post complaints and share with others.

[suckerforsavings]

sucker for savings! I got a phone call about recieving $100 worth coupons for only $1.99. After giving them my credit card number they continue by saying that I would have to cancel before 30 days or that I would be charged $39.00. I decided to cancel right away as the sales person kept insisting. I had to practically yell at him for him to understand that I do not want the coupons and I hung up the phone as he keep pressuring me and as if I didnt have a choice. I recieved the same call about 2 weeks later and imediately said that I was not interested as they kept insisting I finally hung up the phone to see that 2 months later i was charged $39.00. I saved their number which is 1-616-613-2043. I've called several times before I was charged to make sure they did not enroll me. I guess they must somehow have my number logged in the system because they never answer not even now, 2 months later. I called my bank and found out their website is vermontsupply.com and they do not have any other contact information. oh and I never recieved my coupons. lol! learned my lesson.

[DestaneeT]

My account has already been charged $220! i cancelled my policy and they charged me $19.95,where i was asssured no other credits would be placed on my account,non the less two days later another $70.00 was billed, wich is another $19.95 to cacel it as well,what a hoax this is! i havnt lost a pound or even received the energy they so highly spoke of.Someone needs to stop these people!this is a gimmic and a trick,very unhapyy customer#'who knows;,Destanee

[hercolt]

Like most people I think that I can recognize a scam. I didn't spot the Nutrition Craze scam right away (I won't say how I did, as it probably monitors this site).

I realized within a few hours that I had been "had". I contacted my credit card company to advise it of a potential problem. I have canceled my card and arranged for a replacement to be sent to my bank (which will take about 5 business days). Part of my reason for doing this is that I cannot be sure that this less than ethical company will not pass on my personal and credit card information.

I emailed the company (via its online website using "Contact Us" which I am not sure works and by separate email to [e-mail]). I have told it to cancel my trial order, to charge nothing to my account and to pass no information to any company, person or organization.I, also , advised it that I was aware of its business practices and that my credit card company was aware of its activities. I advised Nutrition Craze that I would pursue all legal remedies if it charged unauthorized amounts.

My credit company has advised me to keep a copy of my email to the company. If any charge slips through (my account for my canceled card shows none at present), I am to advise the credit card company which will dispute the charge.

If any product is shipped to me, I will return it with a copy of my email, keeping proof of return.

Unfortunately, I have had to take drastic measures. There is, always, someone out there willing to take advantage of the honest and/or vulnerable.

Hope the above is helpful.

[ltamas]

I ordered the Acaiberrie product from Acaioptimum and paid for the shipping and handling. This was done through an article I read written by one of the reporters who stated it was a 30 day trial. Accoring to them it was only 14 day trial that actually expired in 12 days. But the trial period did not start from the date of receiving the product but from the date I ordered it. Which was 10 days earlier than when I received it. I cancelled it within the 30 days but my card was charged prior to the 14 day trial. There was also a foreign exchange fee tacked on that I was not aware of. This product is being sold by The Nutrition Craze group in Antigua. When you call their support number you get someone who barely speaks English in some other country. I cancelled the product within the 30 day trial and when I called the next day to confirm the cancellation they said it was not cancelled and provided me with another cancellation number. I have now reported them to the Ohio Attorney General's Office for some assistance. I also contacted my credit card company and disputed the charges. What a rip-off and Scam. They charged my card $82.38. DO NOT ORDER FROM THE NUTRITION CRAZE GROUP - THEY ARE SCAMS. HOW CAN YOU TRY A PRODUCT IF YOU DO NOT HAVE IT. I HAVE NOT OPENED THE PACKAGES AND WILL BE RETURNING IT.

[muertai]

i also found out that some supplements they advertise the mg count based on the total weight and not the active ingredient to fool you.
read more - http://bestsame.com/same-buyer-beware.html

[WorkAtHomeTruth]

I started warning people about this type of deceptive advertising back in November of 2008 in a post called BradsMoney - Where's that Government Check which covered the flogs that were promoting deceptive hidden negative option offers involving "Google Kits" and "Grant Kits".

The problem with sites like Complaints Board and RipOff Report is that they don't actually help people file COMPLAINTS to the appropriate law enforcement channels, such as:

http://www.ftc.gov
use:
http://www.ic3.gov
http://www.naag.org/attorneys_general.php (file in your state and the state that the company is incorporated in)
https://www.ftccomplaintassistant.gov/
http://complaint.bbb.org/ (two reasons to file with the BBB. One, they will put out warnings about specific companies whereas Federal Law Enforcement typically won't as doing so could jeapordize their cases).

It has been amazing how many credit card companies don't honor disputes even after consumers have either tried to cancel directly with the company with no luck, or after places like the BBB or National Consumers League have put out warnings about specific companies the consumers are filing disputes about.

I recall MANY consumers getting their disputes denied by credit card companies AFTER the National Consumers League put out this warning:

http://savvyconsumer.wordpress.com/2009/01/13/bitter-fruit-for-consumers-from-the-google-money-tree/

[zipper50]

Not only did the reVpure company automatically send another bottle 10 days after sending the free sample (costing $85.26) they continued sending me a "newsletter" which I never ordered. This "newsletter" cost $5.95 a month and, because it was sent from another country, I was charged foreign transaction fees on my creit card. When I complained about the second bottle, they said it was stated in the advertisement that, if I no longer wanted the product, I had to notify them. They also told me that if I decided to continue with it in the future, they would lower their price to $35.00 a month. It sure smells fishy to me.

[kebbers6]

I also got caught up in these scams. Acai Berry and Pure Cleanse, which I took the free trial offer where you only pay shipping/handling charges. Yah right! Suddenly all sorts of debits were being taken from my account. I called both several times and when I finally got through to cancel they neglected to tell me that you also had to call other numbers to cancel those wonderful little memberships for on-line resources that come along with their products. What a mess. After about two to three weeks I finally got it straightened out. I must add though that I have found one product that you can order online and there are no hidden charges. It is called Active8 and I have never had a problem with them. You order exactly what you want, you pay for it and that is the only charge.

[Nbishoff]

I did not order any of products from Acai, but someone from the company obtained my debit card information and ordered diet pills and berry detox pills. Everything they ordered on my card were minimal charges - paid $1.98 S&H for diet pills. Paid $.99 for a trial period of berry detox pills. Do not know what else I paid for. I was lucky enough to get a telephone call from someone at both of the above mentioned places. Therefore, my card was cancelled after I received the 1st call. This has to have happened by someone within the company because the pills have been shipped to me or were to have been shipped to me. I called the number they gave me to ensure that the orders were cancelled and it took me around 30 minutes on hold before I reached someone. I already have the diet pills, which were in the mail before they placed the call to me. I managed to stop the shipment of the detox pills. Net, net bottom line, I did not lose a lot of money, but I consider this fraudulent activity with no other explanation than it had to be someone within their network. Who knows what else I will receive in the mail?

[anlogle]

I was caught up in this scam when I ordered a Acai Berry Supplement on line. What a mess. I cancel one account ,that they take it upon themselves to open for me, then another charge for some other product is charged to my account. I have cancelled the card I used and I hope that puts an end to it. They should not be aloud to get away with this. Thank you CBS and Katie Couric for reporting on it. If the word gets out maybe people will stop orderng these products and put the company out of buisness. I hope florida gives them to boot.