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“Phony invoicing schemes typically prey on the inefficiency of targeted businesses. For their successful execution, these schemes rely on sloppy bookkeeping, inattention on the part of employees, and perhaps more importantly, the failure of one arm of a business to know what the other arm is doing.”
Better Business Bureau’s “Tips for Businesses”
Industry experts estimate that approximately 2% of bogus yellow pages bills get paid, and that as much as $500 million is being lost each year through deceptive practices committed against yellow pages advertisers. These highly lucrative scams have been around for decades, targeting unsuspecting advertisers and tarnishing the reputation of a legitimate major advertising medium.
What are bogus yellow pages bills?
Bogus yellow pages bills (YP) are misleading and sometimes even fraudulent yellow pages advertising solicitations. They typically appear as checks to be cashed or, more often, as invoices totaling several hundred dollars—relatively small so they are often paid without arising suspicion. By paying the “bill”, the “advertiser” is actually agreeing to the terms and conditions of advertising with the bogus publisher.
Federal postal law requires that such solicitations include a disclaimer, in a type size of at least 6 points and in a contrasting color or font. The bogus billers take great pains to stay just within the legal guidelines, and their solicitations usually include the following verbiage:
" THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY UNLESS YOU ACCEPT THIS OFFER."
Despite this disclaimer, bogus bills have become increasingly deceptive, often carrying the famous “walking fingers” logo, a yellow pages symbol that was never trademarked by AT&T and is therefore available for general use. The bills also offer very limited contact information—usually just a toll-free number and a P.O. Box or international address. Conspicuously lacking is a legitimate local business phone number, fax number, or address, and there is often lots of fine print on the back of the bill. Bogus bills are sometimes designed to look exactly like the monthly phone service bills on which local yellow pages advertisers are billed.
The so-called directories that bogus publishers represent are never for the main phone directory in your area, or even one that is distributed to the general public. Rather, the directories are either non-existent or prototypes that aren’t actually published and distributed. If a bogus publication exists, it is always of marginal value, with distribution limited to the advertisers themselves or to unspecified non-traditional markets (public libraries, chambers of commerce, restaurants, etc).
What about bogus Internet Yellow Pages?
Bogus publishers are now extending their reach to include internet yellow pages (IYP) advertising. These bogus bills are even harder for advertisers to distinguish, because:
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IYP services are newer, and many advertisers don’t entirely understand them;
• billing for IYP is less standardized or familiar than that for traditional print YP;
• advertisers are particularly afraid of missing out on or getting ‘left behind’ by the internet revolution.
What can you do?
If you receive what you believe to be a bogus yellow pages bill, don’t pay it! Make sure the bill is for advertising that you have actually ordered. Check the bill’s validity by checking your files for contracts with YP publishers, or call your local YP publisher to see if it’s associated with them. Many legitimate publishers have programs to help combat bogus yellow pages.
If you’re still not sure if you’re dealing with a bogus publisher, ask them for a copy of a current directory or for their online directory’s web address; ask the publisher for written information about where, when, and how the directory is distributed; and check with your local and state consumer protection agencies to determine if any complaints have been filed against the publisher.
If you are a Leone Advertising client, we ask that you pass bogus bills onto us. It helps alert us to the latest scams and helps us determine whether the ‘bill’ is a solicitation or whether you have already unknowingly contracted with a bogus publisher. If so, we offer a service whereby we dispute the bill on your behalf for a contingency fee. In extreme cases (for instance, a “bill” that exceeds $500), we will also follow other measures including notifying the USPS, the FTC, or the Better Business Bureau.
Other actions you can take to stop bogus publishers:
Post bogus ‘bills’ on your office bulletin board, and circulate them among your accounts payable staff members. If you’d like materials regarding bogus bills to circulate among your employees, Leone Advertising can provide flyers or more extensive information.
Notify consumer protection organizations:
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the postal inspector of your area. The U.S. Postal Inspection Service keeps track of schemes that are perpetrated through the mail and can take action to stop such operations.
• your local Better Business Bureau (click on “File A Complaint”).
The BBB can issue an advisory to help tip off other potential victims.
• your state’s attorney general’s office
• the Federal Trade Commission
For even more information, check out the website of the leading yellow pages trade association
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