BBB Alert: Think twice before buying from social media ads

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Social media advertising has served as an effective way for trustworthy small businesses to get the word out about their products. Unfortunately, BBB is finding the same is true for dishonest individuals and companies using fraudulent advertising.

BBB Scam Tracker has received thousands of complaints about misleading Facebook and Instagram ads. In fact, the 2022 BBB Online Scams Report found that online purchase scams were the most common cons reported to Scam Tracker and the category with the most victims. The same rings true so far in 2023.

Here’s some common threads shared by individuals reporting their experiences to BBB Scam Tracker:

Products that claim to support charity: Scrolling through a Facebook or Instagram feed, an ad appears from a small business that claims to be selling appealing jewelry, t-shirts, or other merchandise. As an incentive, they also claim that some of the proceeds from the sale will go to a charity that helps rescue animals, foster children, or supports another worthy cause.

But after a purchase is made, the merchandise doesn’t get delivered. Shoppers report that when reaching back out to the company about their missing purchases, they are suddenly unreachable or reply with an autoresponder. It’s likely that the product never existed, and these sites used pictures and charity pitches to tap into a buyer’s emotional side.

Some consumers report getting direct messages from sellers promoting the products and charity support, asking them to spread the word to friends and family.

It’s always best to do your research first, and let your practical side steer your buying decisions. Visit bbb.org to look for BBB’s report on any companies you’re considering purchasing from and see BBB’s tips on charity scams. Visit BBB’s Wise Giving Alliance at Give.org to research organizations.

Free trial offers: Many of the reported sites use misleading advertising to lead shoppers to believe they are signing up for free trial offers for exciting new skincare products and nutritional supplements touted by celebrities. These promotions claim there is only a minimal investment of shipping fees, but the fine print indicates you’re asked to agree to much more. Consumers report that after agreeing to terms and conditions on a retail site (without fully reviewing them), they began to receive multiple monthly shipments for products in excess of $70-$100 each.

Before you sign up for these “limited time offers,” research the company online and see if there are any other consumer complaints. Read the terms and conditions you are agreeing to carefully, and if you can’t find any terms and conditions, consider that could be a red flag, depending on the offer at hand. Federal law requires transparency when it comes to any terms and conditions tied to purchases.

Also watch out for pre-checked boxes that could default to recurring purchases, and make sure that you know who the company is you’re buying from and where they’re located. See our study on free trial offers.

Counterfeit merchandise: Name brand goods are prime targets for unauthorized duplication, from sporting goods to designer apparel and handbags. If you purchase any of these products you may run the risk of not only receiving poor quality products, but they may not meet environmental and safety regulations either.

Look out for red flags. This includes items that are priced significantly lower than what other retailers are charging, spelling and grammatical errors in the advertisements, and poor-quality images. These are all signs that the advertisement may be for a counterfeit product.

Engaging ads, poor customer service: This category covers a broad spectrum of complaints that BBB receives, from ads for beauty products to trendy clothing to kids’ toys. The advertisements look great, and the products are often inexpensive. This can easily lead into consumers purchasing the items without doing any research into the website or the company behind it. Similar to issues noted above, products may never arrive, and the company could become non-responsive or very vague in their answers.

It’s worth doing a quick online search before proceeding with a purchase. If you can’t find information through BBB, Google the website name with the words “complaints,” “reviews,” and “scam” to see what other customers are saying. Check the “About Us” or “Contact Us” information on the company’s website to see if they contain actual contact details for the business. See if an address is provided, and if so, check it online to confirm it exists and matches with the company claiming to sell the products. If the only way to contact the company is through a form, this could be a red flag.

Apps of unknown origin: While scrolling through your feed you may feel compelled to download the latest “free” app for an online retailer. Beware, not all apps are safe! By downloading an app from a questionable business, not only are you potentially opening up your device to unknown entities; you could be signing up unknowingly for recurring subscription fees. Victims report being charged fees as high as $99 every seven days.

Before you enter your username and password on an app, read the reviews and the description of the app carefully. Look for red flags, such as spelling and grammatical errors. Check that the developer’s website is a working website and read the terms and conditions carefully, as fees could add up very quickly.

For more ways to protect yourself from social media shopping scams, see BBB’s tips for smart shopping online at BBB.org You can also find more general tips at 10 Steps to avoid scams.

If you’ve been the victim of a social media ad scam, be sure to report it to law enforcement and check with your financial institution to see if they can assist you. We hope you will also share your experience at BBB Scam Tracker. Your report could help other consumers avoid falling victim to similar scams.

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