Chief Financial Officer
[Getting Smarter Corporation]
[Street Address]
[City, State Zip]
Dear CFO:

Several years ago, your company purchased laser printer toner cartridges, inkjet printer refills, or inkjet cartridges from a Reseda, California, telemarketer doing business as Central Data Supply Co. The company, whose corporate name is Modern Concept Marketing, Inc., also does business as Supreme Business Products. The Federal Trade Commission (FTC) sued this company and two of its officers, alleging that they engaged in deceptive telephone sales.

The complaint alleged that Central Data charged substantially higher prices for their cartridges than similar or better office supplies from regular suppliers and added substantial, undisclosed shipping and handling charges, sometimes hundreds of dollars. (See the enclosed press release for more details.) The defendants agreed to pay $2 million to settle the case.

Attached is a check to reimburse you for a pro rata share of the amount that your company paid to Central Data. In settling the case, Central Data did not admit liability and the court did not find that it violated the law.

Any organization that lacks adequate purchasing controls can become a victim of an office supply scam. The Federal Trade Commission suggests a few simple precautions to protect organizations from paying for goods and services they didn't order, from labels to light bulbs, toner to toilet paper.

• Get prices in writing. Be suspicious of any vendor who won't send you a price list or catalog before you order.
   
• Assign designated buyers and document your purchases. Designate certain employees as buyers. Use purchase orders to the supplier that have an authorized signature and a purchase order number. The purchase order can be electronic or written. The order form should tell the supplier to put the purchase order number on the invoice and bill of lading.
   
• Make sure you know the company you are ordering from. A common pitch is to pretend you are already a current customer. Sometimes fraudulent promoters even know the name of a company's owner or purchasing department head.
   
• Be alert to "reorder" calls. If a telemarketer says someone at your company had previously agreed to additional, future purchases, ask to see the order in writing. If they claim there is a binding, verbal contract, be suspicious. Verbal future purchase contracts for office supplies are rarely enforceable. Legitimate companies don't rely on them to force purchases on their customers.
   
• Check all documentation before you pay the bills. When merchandise arrives, the receiving employee should verify that the merchandise matches the shipper's bill of lading and your purchase order. Pay special attention to brands and quantity, and refuse any merchandise that doesn't match up or isn't suitable for your equipment.
   
• Train your staff. Train all staff in how to respond to telemarketers. Advise employees who are not authorized to order supplies and services to say, "I'm not authorized to place orders. If you want to sell us something, you must speak to ______________ and get a purchase order." Buy only from people you know and trust. Be skeptical of "cold" or unsolicited calls and practice saying "no" to high pressure sales tactics.
   
• Report fraud. Report office supply scams to the FTC (call 1-877-FTC-HELP or visit www.ftc.gov), or your state Attorney General, local consumer protection office or Better Business Bureau. In addition, consider sharing your experiences with other businesses in your community to help them avoid similar rip-offs.

For more information on how to spot and avoid scams, check our website at www.ftc.gov.