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Investigators at the Kitchener branch of the bureau are taking a close look at a scratch-and-win ticket dubbed Bingo Bonanza, promising thousands of prizes, including a 70-inch TV, resort getaway, barbecue or Jet Ski.
The mail out instructs homeowners - and only homeowners - to scratch the bingo card and answer a skill-testing question, all in hopes of revealing winning combinations. Potential contest entrants are then asked to call a toll-free hotline number to redeem their prize.
The fine print of the contest flyer, however, states "qualified winners must agree to a home care product presentation." The flyer doesn't identify the company selling the products, listing only an Ontario incorporated numbered company.
That raises questions for consumer advocates at the Better Business Bureau "The bingo cards do concern us as they do not disclose the legal or operating name of the company, so consumers do not know who they are contacting," said Ashley Johnson, an ad review and investigations specialist.
A search of Ontario incorporated companies confirmed the company associated with the contest is Cambridge-based Ontario Fire Water Air , which, according to its website, installs and services fire safety, water treatment and air purification systems.
Carlie Bero, a marketing and communications co-ordinator at the bureau, told the Times an investigator called the bingo card's listed hotline to inquire about the name of the company.
"On the phone they don't tell us what the name of the company actually is," she said, noting they could not find out what prize representatives would bring to the house.
"Our concern is that there's no full disclosure. They're still hiding what their company name is, they're hiding what they're selling." When the Times dialed the hotline, identifying it was a reporter calling, the call was deferred to a manager, who did identify the Cambridge company.
A call to Ontario Fire Water Air prompted a call back from an office manager, who identified himself as Owen Smith.
He said he appreciates where the Better Business Bureau's concerns are coming from but assured the company took all steps to ensure their bingo marketing flyer meets legal advertising requirements.
Smith maintains the card carefully explains details of the contest.
"Each customer that calls in we let them know ... every call is recorded, every confirmation is recorded ... so the customer is aware they do have to take part in a water presentation," he explained.
He said the company is aware of concerns raised by similar direct sales marketing cards, but said their bingo scratch card follows rules and regulations.
"We made sure, with a fine-tooth comb, that we had this all approved prior to using this particular card. And we've been using it for some time now." Johnson suggested most bingo cards are likely winning cards, prompting homeowners to call the toll-free number, in turn, prodding consumers to call the company directly.
According to consumer protection legislation, there's a prohibition on door-to-door sales of services such as air and water purifiers, water heaters and duct cleaning. Consumers must contact a company directly to invite them into their home for the purpose of signing a contract, explained Johnson.
However, when a homeowner invites a company to conduct in-home presentations, such as the invitation prompted by the scratch-and-win card, consumers cannot sign a contract during that sales or evaluation pitch, explained Bero.
"They must take the information provided by the company and decide if they want them to return," she said. "Any contracts signed during the sales presentation are invalid." The Better Business Bureau strongly suggests homeowners do their homework before signing any contract.
Bero said if any company suggests there's a problem with a home's water quality, homeowners should contact municipal services to have their water tested, and even then, shop around to compare companies before signing on the dotted line.
"What we're telling consumers is to definitely call a different company to come in and give you a quote as well, before you go through with it." The Better Business Bureau created a profile for the Cambridge company on its website at the end of March. As of yet, no complaints have been lodged against the company.
Questions about similar bingo scratch-and-win direct marketing initiatives have raised the ire of some consumers across Canada, after they reported not receiving a prize TV, even after agreeing to participate in an in-home water purification system. A woman told the Exeter Times-Advocate in 2014 the sales representative promised to return with the prize, but never returned, and calls to the company were not returned.
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