Combating office supply fraud

WASHINGTON, D.C.-Citing approximately a quarter of a billion dollars fleeced from businesses each year through fraudulent telemarketing of printer, toner, and office supplies, Senator Christopher S. "Kit" Band said in a recent hearing that, "Congress is joining with the Federal Trade Commission (FTC) to target and prosecute scam artists preying on small business owners."

Imaging Supplies Coalition (ISC) President and CEO, Bill Duffy, testified as to the scope of the problem, the impact on the industry's customers, resellers, and manufacturers. He told the Committee, "Revenue impact and lost profits are only part of the problem...perhaps even larger than the financial loss is damage to the company's brand image and customer loyalty." He also told the Committee what the ISC and the manufacturers have done to combat this illegal activity and that the ISC will once again partner with the FTC in a grassroots business education campaign.

Also testifying at the hearing were two small businesses and a non-profit organization that had been victimized by the "Toner Phoners," a former manager of a telemarketing operation engaged in scams, a small business office equipment dealer, and Ms. Jodie Bernstein, Director, Bureau of Consumer Protection, Federal Trade Commission.

Bernstein told the committee that, "The commission has battled office supply fraud for many years in the courts and has undertaken substantial efforts to educate businesses on how to recognize and avoid the scam." Bernstein then announced the launching of Project BOSS (Banish Office Supply Scams), an extensive, grass roots business education campaign designed to reach new companies at their inception and to provide existing companies with new tools to help them detect and avoid fraud."

Project BOSS is a multi-faceted education effort. The FTC and a dozen industry, business associations, and governmental partners will distribute materials to potential victims of office supply scams. Through web site links, invoice stuffers, mass mailing, outreach to local business groups, and many other initiatives, the Project BOSS partners hope to reach thousands of small businesses and non-profits and teach their employees and volunteers how to respond to office supply telemarketers when answering the telephone and inform them of their rights if they are scammed.

In summary Duffy stated, "we have been battling these crimes for many years and we are making progress. The manufacturers have and will continue to spend resources, both time and money in the fight to stop this illegal activity. We believe that by working together and utilizing all the available government resources, we can have success in stopping these crimes and protecting our consumers."

The Imaging Supplies Coalition for International intellectual Property Protection, Inc. is a non-profit association of imaging supplies OEMs. The ISC can be contacted at 606/278-3032, or emailed at iscduffy@aol.com.