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SALT LAKE CITY — The Utah Division of Consumer Protection Wednesday released its annual list of top consumer complaints as part of National Consumer Protection Week. The division also highlighted a 2010 Federal Trade Commission report that tracked Utah consumer complaints to the federal agency as well.
“In today’s economy as more people turn to the Internet for business transactions, consumers need to remain vigilant in the fight against scams,” said Francine Giani, executive director of the Utah Department of Commerce.
In Utah, the division saw consumer complaints increase 16 percent during fiscal year 2010, which ended June 30, compared to the previous year.
The top 10 Utah consumer complaints for fiscal year 2010:
1. E-Commerce/Internet Offers: Deceptive practices conducted over the Internet continue to dominate the types of scams that the Division receives. These complaints represent 27 percent of the top 10 complaints.
2. Coaching Services: These services are offered to purchasers of business opportunities and tend to cost far more than originally described. Some deceptive practices include misrepresentation of potential earnings and the qualifications or experience of the coaches.
3. Health Spas: The economic downturn forced many health and fitness clubs to close their doors, leaving many clients with little recourse to recover their losses.
4. Retail Sales: Common deceptive practices include the failure to deliver products on time; failure to make refunds when required or disclose refund policies; and the failure to honor warranties.
5. Personal Services: Common deceptive practices include the unauthorized withdrawal of money from a consumer’s bank account as well as the misrepresentation or misstatement of price or bid.
6. Alarm Systems: Alarm systems are often sold door-to-door with aggressive sales tactics. In many instances, the company sells a new service as if it were an upgrade to an existing service resulting in the consumer being obligated to pay on two separate contracts.
7. Debt Collection: The deceptive practices include the debt collector attempting to retrieve a debt from someone other than the debtor, attempting to collect more than what is owed or misrepresenting its legal status.
8. Home Improvement/Repair: The deceptive practices include the failure of the contractor to provide the service after receiving the consumer’s deposit, the failure of the contactor to honor warranties or the refusal of the contractor to continue working until the consumer agrees to a higher price.
9. Auto Repair: Some common deceptive practices include the repair shop performing unnecessary repairs, failure to disclose refund policies, or failure to obtain the consumer’s express authorization for repairs.
10. Used Car Sales: Aggressive sales tactics are often used in the sale of used cars.
Giani said scammers are always on the prowl for people to take advantage of, but a little awareness and caution can prevent consumers from becoming victims. She said the division has resources that can help, but they are only as useful as the public allows them to be.
"If we can encourage people to do some homework in advance and maybe (avoid) making a mistake, then that's what we would want," Giani said. "Research the source or business to make sure that the transaction is legitimate."
Visit www.consumerprotection.utah.gov or call 800-721-7233 for more information.
E-mail:jlee@desnews.com
