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BBB Warns Shoppers to Beware of Misleading Shipping and Handling Fees

10/26/2009

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Media contact: Janet C. Hart, APR, CFEE (704) 927-8617 office

CHARLOTTE, N.C. – It’s not even Halloween yet, but the online ordering season has already begun.  If you are planning to buy gifts online or from Infomercials on television, the Better Business Bureau has a warning for you about the ways retailers make money on your orders by charging separate shipping and handling fees.

Shipping and handling fees are certainly not new, but retailers are finding ways to make extra money with special promotions such as “order now and we’ll double your order,” or “buy now and we’ll include a free gift” – it may sound like a good deal at first, until you realize that you will be charged separate shipping and handling fees on each item, including the “free” gifts and the “bonus” products.  All of these shipping and handling fees can actually add up to more than the total cost of the products you’re ordering.

Charlotte-based Eco-Canteen (BBB Grade F) sells reusable water canteens via the Internet at www.ecocanteen.com.  These canteens cost $9.99 each, plus shipping and handling of $5.95, and, you get a free tote for a total of $15.94, right? Wrong. Your total will be $20.89, because the “free” tote isn’t free – you have to pay $4.95 in shipping and handling fees on it.  If you order two canteens that come with two “free” totes, you will pay a total of $41.78, which includes $21.80 in shipping and handling fees for the four products,  all of which will be shipped together in one box at a cost that is far less than $21.80. What if you don’t want the free tote so that you don’t have to pay the extra frees?  Sorry, the tote comes with the canteen, you cannot opt out of getting it. Including bonus products is one of the ways that the seller is making extra money.

In the past six months, 62 consumers from 28 states have filed complaints against Eco-Canteen with the Better Business Bureau.  Complainants allege that the total cost, including shipping and handling fees, was not disclosed prior to the consumer’s credit card being charged for the order. By that point, the consumers could not cancel the transaction or stop their credit cards from being charged.  Consumers filed complaints after they had difficulty getting Eco-Canteen to cancel their orders and refund their credit cards.

After receiving a large volume of complaints in a short period of time, the BBB investigated Eco-Canteen and consumer allegations of deceptive advertising and sales practices which included failing to disclose shipping and handling fees prior to purchase, and charging fees for products advertised as “free.”

Eco-Canteen has worked to resolve the complaints and has made some changes to its website to prevent future complaints.  Shipping and handling fees are now disclosed with each product and the “free” tote is now advertised as a “bonus” tote, but you still cannot opt out of getting it to avoid the additional shipping and handling fees.  However, Eco-Canteen has yet to change its checkout procedure so that consumers can see the itemized total cost and agree to the transaction before their credit card is charged.

Eco-Canteen’s phone number is (704) 644-4488 or 1-888-229-9543.

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