May 13, 1999
(Government Services and Lands)

Public awareness campaign on deceptive telemarketing

The Trade Practices and Licensing Division of the Department of Government Services and Lands is participating in a national public awareness campaign on deceptive telemarketing. Governments from across the country, the private sector and non-profit organizations have united in an attempt to warn consumers to be wary of deceptive telephone calls.

Peer advocate training for seniors, presentations to community and seniors groups, and distribution of information brochures are some of the activities planned by provincial and federal consumer affairs offices.

Deceptive telemarketers generally phone consumers promising awards and fabulous prizes, or some other type of lucrative offer. These people are very convincing, and consumers are often taken in by them. The amount which consumers lose to these scams can range from $10 dollars to their life savings.

The Trade Practices section of the provincial government receives telephone calls on a regular basis regarding the legitimacy of offers made to consumers over the telephone. The most common inquiry is from consumers who are informed they have won a car and must pay anywhere from $7,000 to $10,000.

Deceptive telemarketing is a multi-billion dollar business in North America. It is difficult to control such operations because many consumers will not report the fact that they have been swindled. There are also consumers who refuse to accept the fact that they are being scammed.

Ernie McLean, Minister of Government Services and Lands, said: "The public awareness campaign is timely since we are celebrating the Year of the Older Person. Although consumers from all walks of life and ages are targeted by deceptive telemarketers, seniors are the most vulnerable targets and represent the highest percentage of victims."

These telemarketers often offer prizes in return for money, or offer an investment which guarantees significant returns. In such cases, consumer affairs officials in the department advise consumers to say they are not interested and to hang up the phone.

Consumers who are targets of such offers should seek advice from the Trade Practices and Licencing Division or the Competition Bureau of Industry Canada before paying out any monies.

Media contact:

Carol Furlong
Trade Practices and Licencing
(709) 729-4196

Rick Callahan
Director of Communications
(709) 729-4860

1999 05 13                   10:10 a.m.