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JGB Enterprises Warning, A Cautionary Tale, an Examination of the sales Practices of JGB Enterprises, ALERT: small business owners deceptive practices Las Vegas Nevada
This company sends you a certificate in the mail indicating you've won a prize. Upon calling them you are asked to purchase a batch of extremely overpriced promtotional items (customized pens or keychains, for example) in order to be eligible for your cheesy prize. Very high pressure pitch.
If you bite, they'll come back for more, this time promising large cash prizes of $10,000 to $40,000 if only you'll purchase more outrageously priced promotional goods for your business.
I lost $6,000 to these folks in 1996; many others have lost thousands as well. For full details, see my Web site:
BACKGROUND INFORMATION
I have created this as a public service to alert small business owners to the existence of a company that could affect them as adversely as it has affected me. I will explain how representatives from JGB Enterprises coaxed $6,000 out of me while assuring me for endless months that I would soon get "good news" about an ultimately mythical cash prize that ranged from $10,000 to $50,000.
After 24 years in business, this Las Vegas-based company has perfected what can only be described as a legal swindle. JGB clearly knows the law and is careful to stay barely within it. This is all the more reason to exercise extreme caution when dealing with this company. In my research I learned that at least one state, Connecticut, filed a lawsuit against JGB Enterprises for sweepstakes fraud in July 1996. I have been unable to discover the disposition of this case, but I doubt they were able to make any charges stick.
Another large watchdog organization, the Better Business Bureau, posted a "Fax Alert" in October 1996 in which an insurance company's client reported he had received a prize certificate from JGB Enterprises -- but the prize came at a price. He said he was asked to purchase merchandise to be eligible for the "prize." This certificate (see image below) is the bait I swallowed when I had my first encounter with JGB.
JGB Enterprises does briefly note on the back of its initial prize certificate that "there is no express or implied monetary requirement," but I do not recall any such statement from the lips of the JGB reps who spoke to me on the phone. However, someone who first read the warnings contained on this page called JGB and reported the representative indeed stated that no purchase was required. This was followed by the same long-winded, high-pressure sales pitch that convinced me I needed to buy something to be eligible for one of the four prizes described on the certificate.
This appears to contradict the intent of the Telemarketing and Consumer Fraud and Abuse Prevention Act, which became federal law in August 1994. Under this Act, the Federal Trade Commission (FTC) adopted the Telemarketing Sales Rule, effective as of August 1995. In explaining the rule, FTC documentation states:
"A legitimate prize promotion does not require any purchase or payment of money to participate or win. If a purchase or payment of money is required to be eligible to win a prize, it is not a prize promotion; it is a lottery that is generally unlawful under federal and state lottery laws. Therefore, the Rule requires sellers or telemarketers that offer prize promotions to tell consumers that they are not required to purchase anything or pay any money in order to participate in the promotion or win a prize."
The FTC defines a prize promotion as including "(1) any sweepstakes or other game of chance, and (2) any representation that a person has won, has been selected to receive, or may be eligible to receive a prize or purported prize. A prize is anything offered and given to a consumer by chance."
Unfortunately, contradicting the intent of the Rule is not a violation. So JGB Enterprises remains with us.
JGB says in the various printed documentation it sends to its "customers" that it can afford to give away substantial "cash bonus awards" because it does not advertise. Maybe.
What is JGB Enterprises, you may ask? It is an "advertising specialty" company; that is, it sells promotional items to small businesses. Basically, JGB imprints your company's name, address and phone number on all sorts of inexpensive giveaway items (pens, calendars, mugs, key chains, etc.). Nothing odd about that. However, JGB charges approximately 3 times the actual retail value of the product, and sometimes more depending upon the item. We're not talking about a reasonable profit margin. We're talking about 22 oz. plastic thermal mugs costing $16 each, which should yield a profit of, well, you do the math.
If you've just received a certificate like the one below, do not call the phone number and save yourself a lot of trouble. If you're already in the same boat as I am, be sure to check out the helpful links I've included at left. I've also created a page of e-mail letters written to me by other visitors to this page.
For those with the stomach for it, the details of my personal experience with JGB can be found here.
DISCLAIMER: Be advised that more than one company named "JGB Enterprises" exists and this page refers ONLY to the one based in Las Vegas, Nevada. In particular, the JGB Enterprises of Liverpool, N.Y., which manufactures flexible hoses for industrial and military use, has no connection whatsoever to the operation in Las Vegas.
I'm sure there are several others; I accidentally discovered another JGB Enterprises in my home state of Maryland! To all these other companies, I extend my sympathies. It's unfortunate that legitimate businesses might suffer because of the actions of one disingenuous company.
David
Abingdon, Maryland
U.S.A.
8 Updates & Rebuttals
Roger
Brooklyn,New York,
U.S.A.
JGB Enterprises
#9Consumer Comment
Fri, February 02, 2007
I received the JGB certificate in October and called immediately. I was given the hard sell but refused to purchase any pens. Yesterday I received a call from someone I assume was with JGB. They told me my pen order and a free Lucien Picard watch had been returned to them by the post office and they wanted me to pay the amount owed my credit card and they would re-ship.
I told them I didn't order anything and hung up.
Just wanted you to know.
David
Belcamp,Maryland,
U.S.A.
August 2006 Update
#9Author of original report
Tue, August 29, 2006
I was recently contacted by the CEO of JGB Enterprises, Robert Hunold concerning my experience with JGB Enterprises 10 years ago. Mr. Hunold and I engaged in several conversations about my experience with the company he took over.
Since my experience nearly 10 years ago and since Mr. Hunold took over the company, JGB has made several changes to its practices with respect to its customers and customer satisfaction.
Having talked on several occasions with Mr. Hunold, I am convinced that JGB Enterprises has changed those practices I did not agree with and I am satisfied JGB has corrected its problems.
Dave, who posted the original complaint here
David
Belcamp,Maryland,
U.S.A.
August 2006 Update
#9Author of original report
Tue, August 29, 2006
I was recently contacted by the CEO of JGB Enterprises, Robert Hunold concerning my experience with JGB Enterprises 10 years ago. Mr. Hunold and I engaged in several conversations about my experience with the company he took over.
Since my experience nearly 10 years ago and since Mr. Hunold took over the company, JGB has made several changes to its practices with respect to its customers and customer satisfaction.
Having talked on several occasions with Mr. Hunold, I am convinced that JGB Enterprises has changed those practices I did not agree with and I am satisfied JGB has corrected its problems.
Dave, who posted the original complaint here
David
Belcamp,Maryland,
U.S.A.
August 2006 Update
#9Author of original report
Tue, August 29, 2006
I was recently contacted by the CEO of JGB Enterprises, Robert Hunold concerning my experience with JGB Enterprises 10 years ago. Mr. Hunold and I engaged in several conversations about my experience with the company he took over.
Since my experience nearly 10 years ago and since Mr. Hunold took over the company, JGB has made several changes to its practices with respect to its customers and customer satisfaction.
Having talked on several occasions with Mr. Hunold, I am convinced that JGB Enterprises has changed those practices I did not agree with and I am satisfied JGB has corrected its problems.
Dave, who posted the original complaint here
David
Belcamp,Maryland,
U.S.A.
August 2006 Update
#9Author of original report
Tue, August 29, 2006
I was recently contacted by the CEO of JGB Enterprises, Robert Hunold concerning my experience with JGB Enterprises 10 years ago. Mr. Hunold and I engaged in several conversations about my experience with the company he took over.
Since my experience nearly 10 years ago and since Mr. Hunold took over the company, JGB has made several changes to its practices with respect to its customers and customer satisfaction.
Having talked on several occasions with Mr. Hunold, I am convinced that JGB Enterprises has changed those practices I did not agree with and I am satisfied JGB has corrected its problems.
Dave, who posted the original complaint here
Lorraine
Lusby,Maryland,
U.S.A.
How about a Class Act Law Suit???
#9Consumer Comment
Fri, March 03, 2006
One of the last comments on here said that they had spoken to an attorney in Texas and he stated that JGB Entreprises' owner and employee's would need to worry about one thing and that was a "criminal prosecution" Well.....let's do it then! There is enough solid evidence as to all the letters published online for such a thing as a 'Class Act Law Suit'. There is a way to take these 'son of bitches' down for running such a scam and getting away with it! If there is an attorney, a tort attorney as I was informed, who is out there and reads this, please let us know if this is possible or if I just worked for the judicial system all these years and I know nothing as to pursuing this sort of justice???
Mia
Clarksville,Texas,
U.S.A.
The Owner of JGB Enterprises, Inc.
#9Consumer Suggestion
Fri, August 19, 2005
I recently did a public search and found a campaign contribution made in 2003 by the owner of JGB Enterprises. His name is Robert L. Hunold. Since the owner is the one that calls the shots on the pricing of the promotional materials, perhaps complaints directed at him might work?
Actually, an attorney I spoke with in Texas said the only thing the owner and other people working at JGB Enterprises will fear is this: criminal prosecution.
Patricia
Derry,New Hampshire,
U.S.A.
JGB Unethical Deceitful Not Worth It!
#9REBUTTAL Owner of company
Tue, August 03, 2004
I, too, have stupidly fallen victim to this horrid company, and would go to great lengths to prevent any other small businesses from being ripped-off by JGB!!
On their behalf, the products were delivered in a timely fashion, but were grossly overpriced. The small complimentary gifts also arrived quickly, but the big payoff was never realized.
Do not fall victim to their relentless trap. Simply throw that first letter away, and do not become involved, and you will save yourself a lot of money, stress and aggravation.