Watch out for Unordered Merchandise

Businesses are being bilked out of millions of dollars through office supply scams. The BBB complaints against these companies allege deceptive selling practices, receipt of unordered merchandise, or the company misrepresented themselves as a regular supplier.

New York State Law states that, "No individual or business is permitted to offer items for sale in a manner which includes the unsolicited sending of merchandise which was not actually ordered or requested either verbally or in writing by the recipient. Any merchandise shipped without having been ordered or requested must be prominently marked on the container in bold letters: "This is a Gift. Payment Not Required for this Item."

The Better Business Bureau, along with the Federal Trade Commission (FTC) offer the following five rules for protecting your organization:

• Know and insist on your rights. According to a federal law commonly referred to as the "unordered Merchandise Law," and principles established in FTC enforcement cases, it is illegal for the seller to send you bills or dunning notices for unordered merchandise and as you to return it, even if the seller offers to pay the shipping expenses.
• Don't pay any bills that do not match your documentation. When merchandise arrives, the receiving employee should check to see that it conforms to the shipper's bill of lading.
• Document Orders. Designate specific individuals to be responsible for ordering all supplies.
• Train your employees or volunteers, especially those who answer the telephone or who provide maintenance or support services. If your employees are not familiar with certain callers, advise them to say something like, "I am not authorized to order anything."
• Do not pay for or return unordered merchandise. You may keep and use unordered merchandise. Report the incident to the appropriate authorities. You can contact the Federal Trade Commission at (212)264-1207 or online at www.ftc.gov. Check the seller out with the Better Business Bureau before doing business with the company.

Federal Postal Laws prohibit the mailing of unordered merchandise, with two exceptions:

1) Free samples that are clearly marked as such,
2) Merchandise mailed by charitable organizations soliciting contributions. If you are questioning unordered merchandise delivered to your office, contact the US Postal Inspection Service at (201)324-3720 or online www.usps.gov.

This report is general in nature and not intended as a reliability report on any company, service or product.