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BBB sees spike in online retail complaints

BBB warns consumers over potential social media pop-up risks

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HOUSTON – Online pop-up shops seem to pop-up every day.

Many people are trying their hand at selling products they think people will buy online. One of the latest crazes? Blinged-out tumblers shipped and sold on Facebook.

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KPRC first reported on a Houston business, Faith Flippin Tumblers, that received several complaints from dozens of frustrated customers who said they waited months and never received their tumblers and said when they initially asked for a refund, they were eventually blocked. The owner told KPRC she never meant to stiff anyone, she just fell behind. Now, officials with the Better Business Bureau (BBB) in Houston said they have seen a spike in complains over online retailers, especially via social media. Officials said, with buying online, there is always a risk.

“We are seeing a spike in our complaints of receiving online retail complaints, like businesses that have popped up on social media,” said Denisha Maxey, the senior director of dispute resolution for the BBB in Houston. “We have had several increase in [those types of complaints]. We've had several companies that got 200 complaints for a business that started up on social media, for example.”

BBB officials said while there are many businesses on social media that do deliver their products and have good customer service, since the online businesses on social media aren’t stringently regulated, there is always a risk that the business someone may be buying from may not always follow through.

“A lot of online companies are just popping up. They don’t have anything more than an email address and stating that they’re a reputable business, but they don’t have an address or they’re using a virtual business address, or you have consumers that say they have placed an order and it’s now been 30 days and they haven’t seen anything,” Maxey said.

That is what Tennessee resident Tiffany Finamore said happened to her when she shopped online from a woman on Facebook, who created the page, Faith Flippin Tumblers, selling custom decorated tumblers.

“I ordered from her on Nov. 22. I never received my product. I still have not received my product,” Finamore said.

Finamore said tracking down the progress of her product was a nightmare.

“I started reaching out to them asking about my product -- an update: what was up with my product, when I was going to get it," Finamore said. "Well, then her admin said, ‘Well, we don’t even have your order.’ Well, I showed her where I had talked to Faith herself and screenshotted it and sent it right back to the page, showing where I paid, that I had paid it to Faith herself, and she had told me to send it through ‘Friends & Family’ on PayPal. I still never, never got anything. They just said, ‘Oh, we’ll take care of it.’"

Faith Davidson, the owner, told KPRC that she had fallen behind in orders and took on much more work than she could handle, but said she never meant to stiff anyone. The BBB said this is an example of some of the risk involved with purchasing from social media pop-up businesses.

“You’re taking a risk because they could have just started a business. They may not really have any type of customer service, any type of customer service, any type of policies, any way to handle returns or an overwhelming business -- getting a lot of orders and you really don’t have staff to help you get the orders out,” Maxey said.

Luckily for Finamore, tumbler enthusiasts throughout the country jumped in to fill the need. Social media pop-up businesses jumped in to help.

“I want [those customers] to know -- not everybody is the same. A lot of people do put their customers first,” said Beth Cumber, who started Midlands Vinyl, which also started online. “Not everybody is like that. It’s not even just with cups, just with anything. It gives the other cupmakers a bad name. A lot of us will put in the work to make sure to be professional and get the product to the customer on time.”

Cumber donated five tumblers to customers who paid Faith Flippin Tumblers and never received the product.

The BBB said there are things that people can do to try and prevent bad online buying experiences.

“As a consumer educate yourself, you’re already online. Look up some information about the company. If they only have a way of contacting them via Facebook, that’s a red flag there. There should be a customer service number or email address, some type of way you can get in touch with the company vs. just having to communicate with them on Facebook,” Maxey said.

Some customers of Faith Flippin Tumblers complained that they were directed to pay via the “Friends & Family” option on PayPal and when reporting the issue to PayPal, customers said that they could not be compensated because it was a “trusted transaction,” according to the customers.

BBB officials said you can always report scams online and use their website as a resource.

“Always check the BBB website first. We would love for you to check the website. If you don’t find any information there, do your homework, do your research, check other social media sites. If you are having an issue with the company please complain to us or file something on our Scam Tracker,” Maxey said.

Maxey said those who have filed a complaint can also report the issue to the attorney general’s office.

“If they get an influx in complaints on a company, they will start an investigation,” Maxey said.