parties continue to grow in popularity. They vary from product to product and
each company targets different ages and interests.
parties begin with a demonstration to show all the positive aspects and uses of
their products. When that is finished, the guests are then given a chance to
purchase any of the company’s products. If enough people purchase items the
host can get free items.
can be a great opportunity to catch up with old friends and meet new ones, but
there are things you should be aware of if you plan on attending or hosting an
in-home sales party.
Use a reputable
There are many
companies out there that promise extravagant free offers if you host a party.
However, the offers can fall short of your expectations. Working with a
well-known, reputable company can help alleviate this potential problem.
company allows you to seek out the company instead of them offering you an
in-home party when you are not expecting it. You get a chance to check out the
company and their products before deciding to host their party in your home.
To research a
company, and see if there have been any complaints filed against them, you can
contact the Bureau of
Consumer Protection at (800) 422-7128 and the Better Business
Bureau at (800) 273-1002 or www.bbb.org.
You can also
look to see if the company has their own website. The website should provide
plenty of information on their products and how they got started. If the
company supports a group or cause, their website should also include that
information. What many people do not realize is that you may be helping to
support a group or cause that you do not agree with without even knowing it.
If the company
does not have a website, the sales individual should have no problem giving you
all of the information that you request. If for some reason they do not want to
give you the information you are asking for or if they keep putting things off,
you should beware. That is a sign that something is not right and you should
not host the party as the company may be a scam.
researching a business may seem like a lot of work up front, it is worth the
effort to protect both yourself and your friends who may attend the party.
Watch out for
While there are
many reputable companies that have built their success on in-home sales
parties, their success also drives an opportunity for scams.
One example is
a scam geared towards newly engaged or married couples. The company gets a list
of names from different websites or bridal shows. They lure couples in by
promising a free vacation if the couple attends a cooking demonstration of pots
The sales pitch
convinces them to purchase as much as $2,000 in merchandise presented as top
quality. Further, they are encouraged to purchase on credit. Knowing they will
need pots and pans, couples sign up.
dream vacation becomes a nightmare with disappointing vacation accommodations
and the couple is left with an inferior product, high interest rates, and ruined
in writing. Then, if the product does not perform as you expected, you know
If the seller
promises any warranties make sure you receive a written copy. Know what is and
is not included in the warranty and how long it lasts.
demonstrator if the company has a return policy. If they do, get it in writing.
Do not forget
that you have a three-day right to cancel on transactions initiated through
face-to-face contact away from the seller's regular place of business.
right to cancel law requires the seller to give consumers two copies of a
notice explaining the consumer's right to cancel within three business days. Do
not forget that if you decide to exercise your three-day right to cancel, the
cancellation notice must be in writing. You do not need a reason to cancel your
purchase if it has a three-day right to cancel.
your three-day right to cancel, sign and date one of the copies of the
cancellation form. Then, mail it to the address given for the cancellation.
Make sure the envelope is postmarked before midnight of the third business day
after the contract date. Saturdays are considered a business day while Sundays
and federal holidays are not. You will want to keep the other copy of the
cancellation form for your records.
You may want to
consider sending the letter via certified mail or hand delivering your
cancellation notice because the mailing and delivery dates are important for
proof that the company received your cancellation notice.
If the company
fails to give you a cancellation form, you can write your own cancellation
letter. It still must be postmarked within three business days of the sale.
Here is advice
from the Bureau of Consumer Protection:
Be skeptical of
sales presentations that try to lure you with a free vacation or other
Do not sign a
contract for pots and pans, a car or other major purchases without comparison
shopping. Consumer Reports magazine is a good resource.
Do not sign a
contract if the product is to be delivered later. Your three-day right to cancel
will be up before you can test the product at home.
your name, check contracts over carefully and know the full price and interest
rate of any purchase.
Do not be
talked into signing a contract until you have had time to think it over and get
advice from objective counselors.
products from a company or hosting an in-home sales party, call the Bureau of
Consumer Protection and the Better Business Bureau and ask how many complaints
are on file against the company.