Impostor Scams Rise to the Top

What Could Bargain Products Really Cost You?

By:  Dorothy Riggs, CFE

Most of us want to be good stewards over our finances so we often look for ways to save money, which leads us into the world of potentially dangerous bargain temptations. However, the next time you spot what seems to be a bargain, think before you buy.  The word bargain implies that something is a ‘good deal’. You’re getting something of value for a discounted price. Don't be so quick to believe that. Sure, true bargains do exist. But, some bargains are much less than meets the eye and could cost you a lot more than you bargained for.

If You Knew What was at Stake You Wouldn’t Buy a Fake

There’s a profusion of bargain products and services available.  Absolutely anything can be counterfeited nowadays. Fraudsters are certainly taking advantage of the market’s call to supply and of the consumer’s demand to save. Browse through many flea markets, mom & pop shops or discount websites and you’ll find a plethora of phony designer merchandise; handbags, clothing, shoes, jewelry, personal hygiene products, pharmaceuticals and et cetera.  You name it.  Anything you can think of can be and is being reproduced.  Knockoffs don’t stop at tangible merchandise. Even phony surgical procedures are being sold.  The following problems are associated with the purchase of counterfeit or inferior goods and services:

• Intellectual property theft negatively affects the economy and can damage reputations and resources of legitimate companies and brands.  Less jobs are available.  Governments collect less tax revenue to support schools, hospitals, parks and roadways.
• Inferior products are made with substandard materials and ingredients, which can be hazardous for consumers. Reports tell of failing auto brake pads made of compressed saw dust, exploding auto batteries made with mercury and improper ventilation, phony Viagra pills made of stamped cement, cosmetic butt and breast implants with cement injections, fire sparking adapters and electrical cords lacking proper encasement and the list goes on and on. Many consumers have lost lives, limbs and property as a result of using such products.
• Proceeds from the sale of counterfeit goods reportedly support terrorist groups.
• Many inferior products are manufactured in sweatshops with deplorably unsanitary and oppressive work environments.

How to Avoid Third-rate Products and Services

• UL (Underwriters Laboratories) is a safety consulting and certification company.  UL is not the only company that tests and certifies qualified products, but if you examine many of your household items you’re bound to see the UL stamp of approval. Remember, anything can be counterfeited.  Crooks have gone so far as to counterfeit the UL certification mark on products.  So even the UL stamp doesn’t guarantee safety. Search UL’s Online Certifications Directory to verify that products have actually been deemed safe according to regulatory standards.
• Be wary of products that are manufactured and shipped from foreign countries.  Many countries lack regulatory testing and safety requirements.
• If at all possible purchase from big box or chain retailers.  They are more likely to make sure their products comply with regulatory standards.
• Be cautious when purchasing from mom & pop or small retail shops.  To meet budget constraints smaller businesses often stock cheaper inferior products because they obtain them at bargain prices and minimize overhead costs.
  
• Consult or review regulatory agencies, references, customer complaints and reviews before purchasing items or services.

The next time you see a bargain that’s too good to be true, remember the old saying, “You get what you pay for.”  It would be worth it to pay a little more to save life, limbs and possessions rather than paying $1.00 for a 250 ft extension cord, pack of batteries or adapter/charger and suffer significant loss due to poor manufacturing.