CONGRATULATIONS! You have been randomly selected by CoolTech, Inc. to win a FREE iPod Touch!

1. CONGRATULATIONS! You have been randomly selected by CoolTech, Inc. to win a FREE iPod Touch! To claim your prize, mail this certificate, along with $4.99for shipping and handling to: iPod GiveawayP.O. Box 23383Santa Clara, CA 95o56 YOU MUST RESPOND BY APRIL 1 TO CLAIM PRIZE Sweepstakes President, CoolTech, Inc. WINNER! 3/19/2010 iPod-29837 Date Prize Claim Number

2. Congratulations! You’re a victim of A Fraudulent Giveaway

3. Personal Finance Consumer Scams and Ripoffs Mr. Martin

4. Fraudulent Giveaways/Offers • Can occur via e-mail, phone, or regular mail • Promise you free prizes like cars and vacations…all you have to do is • Send money (to cover tax/shipping/processing) • Provide credit card bank account numbers • Your “prize” never comes

5. Avoiding Fraudulent Giveaways/Offers • Legitimate prizes are truly free…no payment required • You should never have to supply banking information or cash to claim a prize • If it sounds too good to be true… • Companies don’t “randomly” give away things

6. E-Mail Scams • Designed to get you to give up your personal and banking information • Two Examples • Job Offers • Nigerian Bank

9. Avoiding E-Mail Scams • Never respond to any strange unsolicited e-mails • Never click any links in a strange e-mail • Again, no one is going to give you something for nothing…especially not a stranger from Nigeria

10. TIME FOR A CANDY BREAK

11. Mr. Martin’s Candy Corner

12. Mr. Martin’s Candy Corner Mini Reese Cups = 100 for $1 Snicker Bars Spring Super Sale Prices so low, we can’t print them!! Weekly Specials

13. Deceptive Marketing The Bait & Switch The Fake Sale Merchant advertises big sale Keeps items at same price, or artificially jacks up prices and lowers them to give appearance of a sale • Illegal Sales Tactic • Advertise one product with intention of persuading consumers to buy more expensive product • “Bait” gets customer into store, then product is “switched” with something more expensive

14. Handling Deceptive Marketing • Be aware of product and prices before shopping • Use the internet to comparison shop and do research • When products are advertised at a special price • Find out their quality (Consumer Reports) and regular price

15. Infomercials

16. Infomercials • Lengthy (30 minutes – 1 hour) television commercials • Target people with specific, often emotional, needs • Contain large amounts of hyperbole and exaggerated product claims

17. Now Only $4.99 Mr. Martin’s “As Seen on TV” Store

18. Buying from the Internet • Make sure you are dealing with a legit site • Understand the company’s return policy • Never send personal information (banking, social security, credit cards, etc.) over a non secure connection

19. The “s” in “https” means you are secure Padlock closed also indicates a secure connection

20. In conclusion…warning signs • You are promised something for nothing • You have been randomly selected • You can make a lot of money with little effort • If you don’t act now, you will miss out • To receive your prize, provide a credit card #

21. Be a smart consumer  • Be aware of prices • Comparison shop • Critically analyze advertisements • Plan purchases/avoid impulse buys • Keep receipts, warranties and contracts • Understand unit prices • Calculate total costs • Use a “cooling off” period for big purchases

22. Finally! • That concludes our unit on consumer skills • For further reading, check out these two awesome books • Predictably Irrational – Dan Ariely • Priceless: The Myth of Fair Value – William Poundstone