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BBB of Minnesota
and North Dakota
Consumer Newsletter
August, 2011
BBB's Second Year at the 
MN State Fair
We're happy to announce that we'll be at the Minnesota State Fair once again, and we invite Fairgoers to check out the BBB information booth located in the Education Center. Visitors will have a chance to "spin the wheel" and win prizes, as well as receive information on our services for consumers and business owners, including our Student of Integrity Scholarships. As always, these resources are free! We hope to see you there!!
Follow us
on Facebook
and Twitter!
For the most up-to-date consumer news and information, follow us on Facebook and Twitter at www.facebook.com/
thefirstbbb and twitter.com/thefirstbbb
Contact us with your questions!
Operators in the BBB Resource Center are available Monday through Friday from 8 a.m. to 5 p.m. to answer your questions at 651-695-1111, toll-free at 800-646-6222. You can also check company reports 24 hours a day at bbb.org or e-mail inquiries to ask@thefirstbbb.org.

Remember, we're your BBB: we're here for you!
Know someone interested in the latest news?
If you know someone who might be interested in receiving the latest consumer news from us, tell them they can sign up for our free newsletter at
Do the Math on
Penny Auctions

A Risky Gamble
Online "Penny Auctions" are quickly gaining popularity, and though they claim to offer consumers the opportunity to win quality merchandise at low prices, the Better Business Bureau reminds people that purchasing bids only provides consumers the right to bid on an item; they do not guarantee any product in return. The BBB has also noted an uptick in consumer complaints regarding penny auction websites recently.

"Penny auctions" typically work like this: consumers visit websites where they’re told they can win auctions and receive products at exceptionally cheap prices, like a new iPad for $35. They then buy "packets" of bids at a particular rate, such as $1 per bid, depending on the site. According to Moneywatch.com, consumers must pay a fee of 50 cents to $1 each time they bid, and each new bid extends the auction time by fifteen seconds. So while an eBay auction with two minutes left will end in exactly 120 seconds, a penny auction with 15 seconds left could go on for several hours – as bidders watch their account balances shrink...
The BBB Absolute 'No' for August:
HCG weight-loss claims
Every month, the BBB informs the public of an absolute 'no,' a fraudulent scheme or offer they should be on the lookout for.

The absolute 'no' for August involves the alleged weight-loss supplement HCG. In recent months, we've noted an uptick in advertisements focused on weight loss, many promoting a dietary supplement called HCG. HCG stands for Human Chorionic Gonadotropin, a hormone produced in the body during pregnancy. Earlier this year, the Food and Drug Administration (FDA) pronounced the use of this product for dietary purposes 'fraudulent and illegal.'

Clinical trials evaluated by the Federal Trade Commission (FTC), a federal agency that commits itself to protecting the marketplace by policing unfair practices, showed that claims made by firms marketing HCG could not be substantiated. While HCG may not be dangerous, Elizabeth Miller, the Food and Drug Administration's leader for the Internet and Health Fraud Team notes the drug is not approved for weight loss, and also declares it's "at least a form of economic fraud." Based on the FDA's assessment, the BBB is advising consumers to be extremely wary of any advertisements promising easy weight loss in conjunction with the use of HCG.
Phony
Job Postings
A Growing Problem

As much as the Internet has made searching for jobs easier, it also provides an opportunity for ID thieves and scammers to take advantage of eager – and unsuspecting – job seekers. It's becoming more and more common for scammers to deceive potential applicants with phrases like "Get rich quick – without even leaving your home!" in the hopes of illicitly acquiring their personal information. Craigslist, Monster.com, Careerbuilder.com and even Facebook are all feeding grounds for scammers.

"Job seekers need to be on the lookout for potential scams. Before posting your resume to a career site or inquiring about a job, make sure you know with whom you are dealing," said Dana Badgerow, President and CEO of the BBB. "Many job scammers are having candidates set up direct deposit accounts as part of the application process and making it seem as though it's just part of the process to get an interview – when it's absolutely not."
BBB Centennial
Approaches!
Lighting the Way

The Better Business Bureau (BBB) of Minnesota and North Dakota is proud to be known as "the first BBB" – in the world! Our roots trace back to 1912 in Minneapolis, when local business leaders banded together to promote truth in advertising, forming a "Vigilance Committee" of the Minneapolis Advertising Federation. This was the genesis of the Better Business Bureau, and nearly a century later, the BBB is still supported by civic-minded business people. Together, we continue to advance marketplace trust with a variety of programs and services for both businesses and consumers.

One hundred years of any legitimate business providing quality service to the public is quite an accomplishment in itself. But when you stop to think about organizations that championed business ethics and marketplace trust since day one, the Better Business Bureau stands alone. Learn more about the BBB centennial celebration by visiting
BBB Student of Integrity
Scholarships
The BBB is proud to offer an annual scholarship program recognizing Students of Integrity. These scholarships are designed to recognize and promote ethics and integrity among young people. The BBB will award one $5,000 and one $2,500 scholarship to two graduating high school seniors who personify all of the best aspects of high character in their personal choices and actions. Scholarship money is awarded directly toward winners' post-secondary education expenses (tuition or room/board only) at any accredited institution.

Applications and essays will be accepted only from Minnesota and North Dakota high school students who will be seniors in the 2011-2012 school year.

Entries are due no later than Wednesday, September 21, 2011 by 4:00 PM.
 
Better Business Bureau of Minnesota and North Dakota
2706 Gannon Road, St. Paul, MN 55116 • 651-699-1111 • 800-646-6222 • Fax: 651-699-7665
51 North Broadway, Ste. 505, Fargo, ND 58102 • 701-271-2855 • 800-646-6222
355 5th Ave. S., St. Cloud, MN 56301 • 800-646-6222


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