Phony Contests and Referral Sales

A seller may convince consumers that they can save money by re­ferring the seller to other customers. The consumer then enters into a sales contract assuming that the price will be reduced if he or she gives a list of other potential purchasers of the product to the seller. However, the agreement usually provides savings to the consumer only if the potential customers actually buy the product. This selling technique is called a referral sale. Unless deceptive, referral sales are generally legal.

Find the equivalents of the following words and
expressions in the text.

Агенты по продаже на дому, тактика давления и уговоров, период обдумывания, право на расторжение контракта, мошенническая схема, продажа товара по телефону, междугородный телефонный разговор, убедить покупателя, жульническое соревнование.

Answer the questions:

1. What are high–pressure tactics and smooth talk? Give your examples.

2. What is a “cooling–off” period? How long is it? Do we have it in this country?

3. Why should consumers be cautious regarding sales offers made by tele­phone?

4. How much do consumers lose annu­ally due to telemarketing fraud according to the United States House Committee on Government Operations?

5. Comment on the top ten telemarketing scams. Have you heard of any of them?

6. What are referral sales? Are they legal?

Read the story, finish it and retell:

Three months ago Mr Brown received a visit from a salesman representing Home Electrics Ltd, who persuaded him to buy an electric hair drier for $60. He told Mr Brown that if he sent a $15 deposit, they would send him the hair drier on a two–week home trial. If, after that time, he didn’t want to keep the drier, he should send it back and his deposit would be refunded. The salesman assured Mr Brown that he was under no obligation to buy the drier if he didn’t like it.

Mr Brown sent his deposit and received the drier a few days later. But when he tried it out he found it didn’t work, and the same afternoon his wife saw exactly the same drier in a local shop for only $50.

So he sent the drier back to Home Electrics with a letter. In the letter he explained that he didn’t want the drier because it didn’t work and pointed out that the same drier could be bought locally for $10 less.

Instead of getting his deposit back, as he expected, Mr Brown got a letter from Home Electrics in which they claimed that he had broken the hair drier by using it wrongly, and that he still owed them $45.

So Mr Brown wrote back to them. He strongly denied that he had broken the drier, and asked them again to return his $15.

A few days later he got a letter from the Managing Director, who insisted that the drier had reached Mr Brown in perfect
condition, and warned him that if he did not pay the balance within seven days, the company would have to take legal action.

Match the words on the left with the correct definition
on the right:

Consumer	phony.
Cautious	binding agreement.
Fraudulent	obliterate.
Scam	make less.
Debit	careful.
Referral sale	entry (in an account) of a sum owing.
Honest	fraud.
Cancel	deceptive selling technique.
Contract	not cheating.
Reduce	person who uses goods.

UNIT 11.