BROADVIEW HEIGHTS, Ohio — In the wake of Bed Bath & Beyond filing for bankruptcy this past spring, loyal customers of the chain could understandably expect to see potential deals from "going out of business sales." Indeed, with the company's brick and mortar stores shutting down for good, consumers were able to snag plenty of discounts across the country.
But according to the Better Business Bureau Serving Greater Cleveland, situations like these can often present an opportunity for scammers. One Parma woman recently reported her experience to the nonprofit watchdog.
The woman told BBB she "was looking thru Google and came across a Bed Bath & Beyond sale stating 70-90% off." She went ahead and placed an order for $179.63 and received confirmation and tracking numbers, but soon discovered they did not work, and that she had been swindled by a "very convincing" website called Aptatall which used the Bed Bath & Beyond logos.
While the woman was able to dispute the purchase with her bank, she was still taken aback by how realistic the scheme appeared. BBB eventually discovered a number of negative online reviews for Aptatall, and the website no loner appears to be active.
To avoid situations like the one this Parma woman faced, the Better Business Bureau recommends the following tips (text taken directly from the BBB):
- Start with trust - If an entire retail chain is closing, the company may also advertise sales online. If clicking on an online ad, Check the URL for any misspellings which may indicate a scammer created an imposter website. Also, check out online retailer’s websites whose names you are unfamiliar with at BBB.org to see company reviews and ratings.
- Check to make sure the company is truly closing - Some retailers have made deceptive advertising claims about their operating status. For example, a rug retailer in Texas claimed to be "going out of business" for 404 days. Each state has different laws regarding business liquidating and closing sales. In Ohio, sellers may not advertise or conduct a distress sale for more than 45 days although they are eligible for another 45-day extension.
- Confirm you have a deal - Google products you are considering purchasing to find current pricing. Also, know that some retailers may increase the prices of items before a sale or liquidation. Depending on the state in which the sale takes place, this practice may or may not be illegal.
- Use gift cards - If you have a gift card for a store or restaurant that is going out of business, use it. When a company files for bankruptcy protection, a court will decide whether or not the business can honor gift cards. Visit BBB.org to read more about what happens to gift cards when a company goes bankrupt. Sometimes competing businesses honor gift cards from closing stores as a measure of "goodwill" towards consumers.
- Use a credit card - When a store is closing, use a credit card for purchases as an added protection measure in case something is wrong with an item or an online purchase turns out to be a scam. This is helpful if a consumer paid for home delivery of an item, such as a refrigerator, and the company failed to show up. The consumer would then be able to dispute the purchase with their credit card company.
