Consumers: Beware of Online "Freebie" Scams, Including Magazine Subscriptions

Ethical, legal, and regulatory issues for the most part do not differ on a Business to Consumer (B2C) web site compared to a Business to Business (B2B) site. If a customer, whether they are a business or Joe Average consumer, is a victim of false advertising, leaking of confidential information or a scam, the harm done will result in lost customers and potential future revenue. Regulations vary from state to state, and are becoming more common in today’s online world. 

Ethics in business are important toward establishing a good rapport with clients. Internet surfers often receive pop-up banners from promotions businesses who are promoting other companies through their websites. These promoters often promise a big ticket item such as a free laptop or plasma television simply for registering on their site and selecting for example three vendors to “try out.” It is a scam because what they require is that the customer sign up for a magazine subscription or open up a retirement savings account, and then never come through in sending the free item to the consumer. Their promise is that when the consumer has paid for the magazine subscription or opened up the account, it is only then that they will qualify for the free item. This is done entirely online and there is rarely a traceable name of the company who is tied to the website. There is also no contact provided for the consumer to find out when they will receive their free item or to complain; thus it is a scam.