No such thing as a free lunch — or HDTV

Herb Weisbaum • Profile • E-mail

Let’s be honest. We all like to get something for nothing. Whether it’s a complimentary dessert or a hotel room upgrade – free is a darn good price.

But I’ve been around long enough to know that when I’m offered a big ticket item for free – a widescreen TV, portable music player, videogame machine, or $500 gift card – it’s a scam.

The Internet is filled with these bogus offers. Some appear as pop-up ads. Others show up in your e-mail. The sleazy companies doing this also run banner ads on legitimate websites.

“These are tried and true scams,” says Sally Greenberg, executive director of the National Consumers League. Her organization runs the National Fraud Center. “The fraudsters who perpetrate these scams are very, very good at what they do,” she explains. They know people like getting free stuff, so they use that to lure in their victims.

Three weeks ago, Washington State reached an out-of-court settlement with SubscriberBASE, a South Carolina company that offers expensive brand name products – laptops, digital cameras and TV sets – for free, as part of its “New Member Incentive Promotion.”

The Attorney General’s office charged SubscriberBASE with deceptive marketing practices. In its lawsuit, the state claimed the company’s ads were misleading because they did not tell consumers they must buy things to get the “free” item. The lawsuit alleged people had to spend more than the value of the “free gift” in order to receive it.

In settling this case, SubscriberBASE did not admit doing anything wrong. In a news release, the company insists its marketing practices “comply with all state and federal laws.” But SubsriberBASE agreed to stop its promotions to Washington residents and to refund money to any of the 35,000 people in the state who bought something in order to get the free item that wasn’t free. Note: SubscriberBASE is still able to target consumers in every state other than Washington.

The anatomy of a ‘free’ pitch
Assistant Attorney General Paula Selis handled the case and took me step by step through one of the promotions. This one started with a pop-up ad for a free 42-inch Samsung HDTV, supposedly worth $1,199. The ad also says “membership is FREE and you will never be required to pay for test products.”  But Selis says, “That’s not true at all.”

In order to “qualify” for the free TV you have to purchase four items. The choices are all products or services from third-party advertisers, including a Netflix membership, tooth whitener kit, DVDs from Columbia House, posters, and an Internet starter kit.

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