consumeralertdropship

Michigan AG & BBB Issue Drop-Ship Rip-Off Alert

consumeralertdropship

We’ve heard it for years, “If it sounds too good to be true, it probably is.” Unfortunately, when we spot the irresistible, common sense has a tendency to step to the sidelines, and we put ourselves in danger of being ripped-off.

Michigan’s Attorney General Dana Nessel and the Better Business Bureau of Western Michigan are reminding everyone today in a consumer alert issued ahead of the holiday season, if it is too good to be true, it probably is not true, advising everyone of a common rip-off tactic called drop-shipping.

Drop-shipping is a ploy used by self-proclaimed entrepreneurs to skim off the top of holiday must-haves and other goods throughout the year. Sellers set up websites to peddle products they do not keep in stock and send orders placed through their sites to various third parties to fulfill and ship the product directly to the consumer – all while charging markup-ups of up to $50 or more.

Attorney General Nessel says, “As we approach the holiday season, it is imperative we arm Michigan consumers with the information they need to shop wisely and avoid being victims of holiday scams,” adding, “While not always illegal, drop-shipping is a tactic that can increase the out-the-door price for consumers who could have purchased products cheaper elsewhere.”

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The drop-shipping alert issued today outlines a few ways consumers can protect themselves from falling victim to this common year-round ruse, including:

  • Research the product and the seller of the product you want to purchase before you buy it…
  • Complete an online image search of the product and other images the seller has posted to their site to see where the product is coming from, how much it really costs, and who else is selling it…
  • Compare prices for the same or similar products from other sellers…

Phil Catlett, CEO of the BBB serving Western Michigan says, “The Better Business Bureau wants people to be informed consumers,” and reminds us, “The BBB receives a number of complaints every year from customers who didn’t know the website they purchased from involved drop-shipping. Complaints include customers who never receive the item ordered or, if it is received, it comes much later than expected. Often consumers receive their product several months after it was anticipated to arrive.” Catlett suggests, “When done transparently, drop-shipping can connect consumers with products they may have otherwise overlooked. However, many drop-shipping websites misrepresent the real price of the item and delivery times, leaving gift givers with nothing but an empty promise on Christmas morning.”

Today’s consumer alert is part of a series of alerts Attorney General Nessel is publishing for consumers ahead of the holiday gifting season to protect Michiganders from being scammed.

You can read the full consumer alert at the link below:

https://www.michigan.gov/ag/0,4534,7-359-81903_20942-512905–,00.html