Scholastic School Supply Scam Features False Invoices, 22 States
Des Moines, IA–(September 9, 2014) Better Business Bureau is alerting schools and daycares to a scam involving Scholastic School Supply. The tactics employed by the company are similar to the well-known "Yellow Pages Scam," a business to business operation that surfaced in 2013, and bilked more than $14 million from small businesses and churches before being halted at the request of the Federal Trade Commission.
"This scam takes advantage of schools, daycares, and other educators, and the frenzy at the start of the school year," says Chris Coleman, President & CEO of BBB Serving Greater Iowa, Quad Cities and Siouxland. "Administrators who are just trying to stay on top of bills will recognize the name and pay the invoice without knowing the books were never ordered. Sadly, this type of scam is all too familiar to us at BBB."
Consumers reaching out to the BBB allege that the operation is sending false invoices to schools and school districts throughout the country in the amount of $647.50 for a bulk purchase of text books that were never requested or received. The only contact information available on the invoices is an email address which consumers report does not respond to messages, a phone number which routes to a series of voice mail boxes, and mail drop addresses in either Sewell, New Jersey or Las Vegas, Nevada. Although the entity lists addresses in New Jersey and Nevada on its invoicing, the BBB has been unable to locate any corporation filings, business licensing, or otherwise required business entity documentation for it in either state to substantiate a physical location.
As of September 5, 2014, BBB Serving Southern Nevada (which serves Scholastic School Supply's headquarters) has received a total of 51 complaints from across the country, as well as 2,303 inquiries regarding this scam operation.
With numbers continuing to rise in increments of as many as 15 complaints a day, schools are urged to not pay the invoice, but instead to contact the Federal Trade Commission at (877) 382-4357 www.ftc.gov, the local Postal Inspectors, or Nevada State Bureau of Consumer Protection at (702) 486-3132 www.ag.nv.gov.
Consumers may also contact BBB Serving Greater Iowa, Quad Cities and Siouxland at 800-222-1600.
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ABOUT Better Business Bureau: For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2013, people turned to BBB more than 132 million times for BBB Business Reviews on more than 4.5 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. BBB Serving Serving Greater Iowa, Quad Cities and Siouxland, founded in 1940 and is one of 112 local, independent BBBs across North America. You can reach us at 515-243-8137 or online at bbb.org/iowa.
