Scams! Let the buyer beware

This is one story of a scam: “Alan received a number of phone calls to his mobile phone. The calls came from an unknown number, and the caller offered Alan a betting software package. At first Alan ignored the offers but he continued to receive calls over a number of weeks. Alan said ‘the salesman was very well spoken – in fact he claimed to be a Professor from an English university.’ The sales pitch included a claim that the program was tried and tested and that it used a very complicated system of 33 criteria for picking winning horses. The company sent out a very glossy, professional-looking brochure. The salesman also claimed that he had been very sceptical when he first heard about the program, but that his mother had won over $5,000 in the first month. He told Alan that he could win over $120,000 in a year.

“Alan said, ‘I was extremely sceptical and asked loads of questions, including, If it’s so good why are you selling it? and the answer was that only 100 copies of the program exist and they only sell one when somebody dies or doesn’t want to use it anymore. The company also said that anybody with an ABN (Australian Business Number) could claim the program as a tax deduction and get a GST refund. Alan told the salesman that he wanted to talk to his accountant before he agreed to anything, but ‘they put a lot of pressure on me, telling me if I wanted it I had to agree on the spot, as it was a long weekend.’  After Alan had asked only a few questions, the asking price dropped from $10,000 down to $2,200. The software came with an absolute money-back guarantee if it didn’t work, Alan was told. ‘I was very reluctant, and I kept thinking, What if, what if... but the pressure, and the guarantee, and the tax deductibility made me agree. Alan lost a lot of money on the software. After he called to complain, the company would never let him speak to the original salesperson again. Alan is still locked in a battle with the software company and doesn’t think he’ll ever see his money again.”

Helen Campbell from Redfern Legal Centre told the SSH: “We recently became aware of a 21st century variation on the encyclopaedia salesman. This is new software for your computer that claims it can teach your child mathematics. There are several different brands around; some even claim that your child will become a ‘genius’! Sadly, (or perhaps fortunately) no computer can ‘teach’ anything or take the place of an education. Even more sadly, the software being promoted at extraordinarily high prices in the thousands of dollars, or something very similar, is available for free on the internet. There are also resources available through NSW public schools. Recently this software has been promoted to the non-English-speaking community. These parents are understandably particularly anxious to do everything they can to assist their children’s education. They also tend to be low-income households with little fnancial resources to spare. These mathematics programs, so far as we are aware, are not available in languages other than English and are useless for either parent or child. Even for English-speakers, the money can be better spent elsewhere and your child’s school is the best source of advice on helping your child with mathematics.”

If you are suspicious of any deal that you have been offered have a look at the ACCC website.

The address is www.scamwatch.gov.au or Contact Redfern Legal Centre at Redfern Town Hall Ph: 9698 7277

Photo: Ali Blogg - Helen Campbell of the Redfern Legal Centre

Source South Sydney Herald September 2007 - www.southsydneyherald.com.au