COMBAT helps business get out of shady contract

Small-business owners often turn to Northeast COMBAT for help when they find themselves in the role of consumer. Such was the case for Augusta businesswoman Joan Crowley, owner of Joan’s Interior Design (name changed by request) when she fell for a questionable advertising offer.

Joan was approached in her shop by a saleswoman named Martha who was representing “Business Builder Directories,” a company with headquarters in Boca Raton, Fla. Joan had been custom designing curtains and drapes for five years and was seeking customers, but she didn’t have a big advertising budget. Martha offered “an affordable alternative” to media buys.

For $1,500, payable in three installments, Business Builder would include Joan’s Interior Design in a directory of local businesses to be distributed to Realtors and free to homebuyers. Both Martha’s sales pitch and the company’s brochure clearly stated that the directory would be handed out to homebuyers who were “new” to the area. Seeing an opportunity to introduce her business to a fresh crop of consumers most likely to be interested in window treatments for their new homes, Joan signed the agreement and made her $500 down payment.

Joan became concerned about the wisdom of her decision when she received her copy of the “Directory,” a hastily thrown together, stapled, 25 (photocopied) page document containing only an alphabetical list of 65 local companies with a brief description of each. Joan tried to call Martha, but the telephone number provided had been disconnected. She then called Realtors with whom she was acquainted. One told her that somebody had just dumped a small stack of directories at their office without permission, so they just threw the things away. Another told her that they handed the directories out, but that most of the potential buyers were local people seeking to relocate, not the new customers Business Builder had promised.

Now even more concerned, Joan called Business Builders. The company was unreceptive, and intended to hold Joan to the agreement. Feeling taken, she just decided to eat the loss and not pay the $1,000 balance. Business Builders then started sending her dunning notices and making threats about her credit. Joan was fed up and, having read COMBAT’s monthly articles in the Bangor Region Chamber of Commerce newsletter, contacted us.

We advised Joan that for us to intervene directly on her company’s behalf, she would have to purchase a COMBAT business membership, which she did. Our first contact with Business Builders was unsatisfactory, they flat out refused to do anything. So we wrote again, sending them a copy of their own promotional brochure that promised reaching “new to the area” home shoppers, and warning that if they did not drop their demands for the $1,000 balance, we would ask state and federal agencies to examine their practices for elements of fraud.

Sometimes it just takes putting a bug in the right place, and Business Builders relented, releasing Joan’s Interior Design from the contract. “I wasted $500 because I didn’t think smart,” Joan wrote. “But for a $125 COMBAT membership, I saved $1,000 and additional aggravation. That was a smart business decision. PS: Do you have windows that need curtains as a donation?”

Actually Joan, we might take you up on that kind offer since COMBAT will soon expand into more spacious offices with room for additional volunteers so we may help even more consumers and merchant consumers.

Speaking of which, COMBAT is planning its first business membership drive. We are looking for volunteer solicitors (especially businesspeople) to help us reach our statewide goal of 1,000 business members. Call 947-3331 (box 3) or e-mail admin@consumerprotect.org for information.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT-Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. Individual membership $25, business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.