Monday, February 28, 2011

Who Sends Money For This Yellow Pages Solicitation? Apparently 162,000 Business Owners


This above pseudo-invoice came in the mail today. It's an "order form" for a "yellow pages" listing for just $396. Who would fill this out and send money? Apparently 162,000 businesses did.

A story from July 2010 on CBSNews.com reports, "Prosecutors say 162,000 companies responded to the money laundering scheme, and although United Directories did, in fact, publish a business directory in 2008, it contained only 55,000 of the 162,000 businesses that had paid for advertising space."

According to the story, these guys collected $425 million over a four year period. All they did was send solicitations like the one above and people sent them money. And it's apparently legal. The Jacksonville Business Journal reports that the prosecutors were forced to drop the charges.

Moreover, their attorney truthfully claims, "This company has an A+ rating from the Better Business Bureau."

It's really a half-truth (which is pretty darn honest coming from an attorney). The Florida Times-Union pointed out that three Better Business Bureau's rated the company. Only one was a A+. The other was a B- and the third was an F, which taken together says more about the Better Business Bureau than United Directories.

At the bottom of their solicitation United Directories (un)clearly states, "THIS IS A SOLICITATION FOR THE ORDER OF GOODS OR SERVICES, OR BOTH, AND NOT A BILL INVOICE OR STATEMENT OF ACCOUNT DUE. YOU ARE UNDER NO OBLIGATION TO MAKE ANY PAYMENTS ON ACCOUNT OF THIS OFFER UNLESS YOU ACCEPT THIS OFFER. WE ARE NOT AFFILIATED WITH YOUR LOCAL PHONE COMPANY AND THE DIRECTORY IS NOT DISTRIBUTED TO ALL LOCAL TELEPHONE SUBSCRIBERS. IF YOU ADVERTISE IN YOUR LOCAL PHONE COMPANY'S YELLOW PAGES AND ACCEPT THIS OFFER, THIS DIRECTORY LISTING WILL BE IN ADDITION TO YOUR EXISTING YELLOW PAGES ADVERTISING. THIS IS A NATIONWIDE BUSINESS YELLOW PAGE LISTING SOLICITATION. A LISTING IN WWW.YELLOWPAGESUNITED.COM WILL BE INCLUDED WITH EACH YELLOW PAGES LISTING OF $396.00. SEE TERMS ON REVERSE."

Aside from being poorly written and presented in all caps with narrow line spacing, reducing readability, it appears that nothing is being promised. If anyone demands that something must be provided, they have themselves covered. When I visited their website, I found my business "listed" exactly as it appears in the white pages.

Hmmm. I suspect they "listed" their entire business mail list, sent out the solicitations, and are sitting back waiting for the money to roll in. Paid or unpaid, the companies are listed. Since everyone is listed the directory can claim a service was provided if anyone complains.

There is so much wrong here on so many levels, it's hard to know where to begin...

  • Apparently the courts don't find this deceptive. I do. If the courts can't stop this, but can drive small businesses under because of the actions of a rogue employee or because the company charges more than a lawyer thinks is right, what use are they?

  • Businesses like this tarnish everyone in business. Practices like these make people jaded and skeptical. This hurts above-board companies that legitimately try and help other businesses and it hurts the companies who need their services, but won't consider them out of fear of being defrauded.

  • I won't even get started on the Better Business Bureau.

  • Deceptive or not, I find it hard to believe that anyone would complete this form, send it in, and send money. Yet they do. If 162,000 business owners responded to this type of marketing, what are the opportunities for companies marketing legitimate products and services?
The answer is unlimited, provided the company is marketing.

Marketing? I knew there was a catch!

3 comments:

  1. Nothing bad in this solicitation mail if the yellow pages have the services offered on it. These companies benefited a lot on the services that they paid in that solicitation mail. Why they accept if there's no good turn back on their profits?

    ReplyDelete
  2. While in the process of correcting address Information for our Business with Yellow Pages, I received this solicitation from yellow Pages United...amazing how similar the "Logo" is for Yellow Pages (they even show the fingers doing the walking!) I filled out the form with "Corrections" thinking it was for Yellow Pages, then I receive a bill for $396.00; the Map location is even incorrect...if they want my money they'll have to come get it.......Pissed Off!

    ReplyDelete
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