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BBB warns consumers were burned by E-Cigarette companies
Posted: 04.13.2011 at 10:46 AM
Megan Coleman

Megan Coleman anchors the 5:00p, 5:30p, and 6:00p newcasts on WSTM/NBC and serves as News Content Manager for the CNY Central media group.

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There's a warning for anyone who's tried E-Cigarettes. The Better Business Bureau (BBB) says many consumers were overcharged and left disgruntled by "free" smokeless cigarette offers, which it says, were misleading.

According to the BBB, people who tried to take advantage of "free" Internet offers for smokeless cigarettes say they were burned by unexpected charges. The BBB has received hundreds of complaints from consumers who thought they were getting a free trial, but ended up losing hundreds of dollars in recurring charges on their credit or debit cards.

"The complaints point to an advertising model designed to hook consumers faster than the cigarettes their product purports to replace," said David Polino, Better Business Bureau President. "Free trial offers often mask a deceptive offer, and consumers should always look for the fine print when they see one. The BBB Code of Advertising is clear about the use of the word "free". This company should read it."

Customers from Upstate New York and 43 other states have filed more than 360 complaints against Direct E-Cig, over the last year. The BBB says Direct E-Cig failed to answer 170 of the complaints. Direct E-Cig currently has an "F" rating with the BBB.

Here's what happened to consumers, according to the BBB:

In most cases, consumers told the BBB they ordered what they thought was a free starter kit from an online offer, only to find out later that the company billed their credit cards for $100, $200, or more. Direct E-Cig told the BBB that its website notes that consumers must go through a cancellation process within 14 days "to avoid being billed the full price of the kit of $109.95 and future monthly shipments."

The BBB says they received the following complaints from consumers:

"I didn't sign up for anything and now they're charging my account number every month." "They're not reputable and they don't care that they're not. When I called to cancel I was told I couldn't and they hung up on me."

"I was taken. This company is very bad. They charged my credit card for products I didn't order and I was never told I'd have to cancel the order."

"I felt tricked into buying a product because they claimed it was free. This company was very misleading."

Direct E-Cig is one of several distributors of smokeless cigarettes. Other companies also offer free or discounted starter kits and then bill customers for the full price or enroll them in an ongoing program to receive cartridge refills and other products. Smoke Freely, LLC, currently with an "F" rating, also has hundreds of complaints with the BBB.

The BBB received this complaint from someone who feels misled by Smoke Freely, LLC:

"They are a deceptive company. The ten day trial starts the minute the product leaves their business. By the time it arrives in the mail you're lucky if you have the time to return it. I am thoroughly sickened that a company conducts business in this manner."

The BBB offers the following advice for consumers to consider before they take advantage of trial offers for smokeless cigarettes or other products:

*Be very cautious. Committing to trial offers often means you're required to pay the full price for the product or you are automatically enrolled in an ongoing program as soon as the trial period is over.

*Read the fine print. Hidden in the fine print consumers often find red flags. BBB recommends that you read through terms and conditions and privacy policies before signing up for this or other offers.

*Check them out first. BBB recommends that you start with trust and research the business history before you buy and go to bbb.org. Consider that even though some consumers followed all of the requirements to cancel their agreements, they still had difficulty getting refunds.

*Protect your credit card. Pay particular attention when you are asked to supply credit card information and watch your statements closely. BBB recommends contacting your bank to dispute any suspicious charges that may occur.

*Watch for third party statements. Understand that, in some cases, these companies can supply your contact information to other businesses.

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