Avoid bogus bargains at going out of business sales

Unfortunately, the economy and other factors can drive retailers out of business. When brightly colored and prominent ads shout “Going Out of Business Sale,” “Total Liquidation,” or “Everything Must Go!” you might think you are about to get the deal of a lifetime. But you should shop cautiously for several reasons – even when merchandise is deeply discounted. BBB Scam Tracker often receives reports about online 'going-out-of-business' sales that either don't actually exist or don't live up to the hype, resulting in a loss of money and scammers stealing your personal information.

How this scam works You're shopping online or scrolling through social media and come across an advertisement for a large retailer's 'going-out-of-business' sale. The advertisement and website may look like the real deal, and the prices of products may be incredibly reduced. Tempted to take advantage of the sale, you decide to add items to your cart and make your purchase. You receive your tracking number in an email and await your package! However, after several days or weeks, you never receive your order. You try to reach out to the company to get a refund, but they tell you that your order is not in their system and that you were likely scammed by a fake website or advertisement.

One consumer shared their experience on BBB Scam Tracker, 'I saw the Advertisement for [company name redacted] on Facebook. Since the store is going out of

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th o Happ Anniversary business, I believed the Ad that stated it was a store closing. The website looked EXACTLY like the [company name redacted] website that I have used many times over the past several years. I placed my order, they even gave me a Tracking Number which I followed right up to the day they stated my order had been delivered. I was home and did not receive any deliveries...I contacted [company name redacted] gave them the order number and the tracking number, only to be informed that the numbers did not belong to them.'

Frustrated shoppers have also reported to BBB Scam Tracker that the products they receive from online 'going- out-of-business' sales are much worse quality than what was shown online. For example, one consumer shared they saw an advertisement for a 'going-out-ofbusiness' sale from a small leather goods company. When the consumer received their order, the product was not what was advertised. 'In reality, the products are made in China and are 100% plastic and there are no refunds unless you ship the item back to China at great cost.'

Other times, scammers never intend to send you anything at all. They steal your credit card information when you are prompted to pay. These phony sites can also download malware onto your computer and give scammers access to your personal information, passwords, and more.

How to avoid similar scams

• Always check a company’s reputation on BBB. org before doing business with them. Look beyond the letter grade rating to read the customer reviews and details of complaints to get an idea of what past customers have experienced. You may decide the great prices they advertise may not be worth the potential problems that could arise. Be wary of purchasing items from online retailers you are unfamiliar with.

• According to the BBB Code of Advertising, liquidation and going out of business sales are considered “emergency” or “distress” sales. Businesses may only advertise this kind of sale if they are actually going out of business. In addition, they have a limited time period to offer such deals. BBB’s code states, “If such sales exceed ninety (90) days, advertisers must be prepared to substantiate that the offering is indeed a valid emergency or distress sale.” If you notice a business in your area advertising a “going out of business” or “liquidation” sale for months without ever closing, be wary. It could be a shady sales practice. Some businesses use these terms dishonestly to draw in customers and pressure them to buy, often by implying limited access to certain merchandise or a small window of time to purchase.

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