Premium Distribution Corp. (“PDC”) is one of countless office supply scams looking to dupe businesses out of money. The company has gained a poor reputation
and an F rating for deceptively trying to sell toner to businesses. Several businesses have filed complaints with Business Consumer Alliance against the Woodland
Hills, California company.
PDC calls businesses disguised as the customer service department for their printer/copier manufacturer and asks employees to verify the model of the copier their company uses. They make it appear as if there is a current relationship with the business and
the information they request is simply to update their records or verify an existing order. They typically reach employees that are not responsible for handling these types of orders and use that to their advantage. With the information they are able to gather,
businesses are sent unauthorized and unwanted orders of toner, along with overpriced invoices. One complaint alleges PDC billed their business close to $500 for an $80 product.
Unfortunately, when businesses contact the company to rectify the matter and arrange to return the unordered merchandise at PDC’s expense, they are told that the orders were in fact authorized and claim to have recordings of the approval. In many cases,
the businesses claim they are not informed that the calls are recorded and they only answer the questions asked because they believe they are speaking to their regular supplier. Many feel their only recourse is to file a complaint.
Currently, PDC has over 20 complaints, which they generally respond to by denying allegations, claiming businesses refuse to listen to the recorded authorization for orders, and offering to send shipping labels to return items. At no time does the company
address allegations that the products are overpriced.
Businesses need to be mindful of these types of scams and know how to be on guard so they don’t fall victim to these malicious schemes.
Kim’s Advice: Don’t take the bait! If your business receives a call out of the blue asking about your office equipment, with specific questions about your copier’s type, model, and make—just hang up or ask the caller for the name of their
company and a contact number so you can authenticate who they are. If the caller asks for the name of the employee that makes major purchases for the business, don’t provide it. They often do so just to get the employee’s name to add to the bogus invoice sent
with the unauthorized order.
It’s often said that “an ounce of prevention is worth a pound of cure”. Be proactive by training all staff, especially new hires, volunteers and interns, on what information should be given out about your business. Also, make sure they are aware of your
regular vendors and put in place company procedures on how to deal with unknown solicitors.
Should your company receive an unexpected or unauthorized delivery, refuse the package(s). Employees should be instructed to avoid opening items that are not from your regular vendor. If delivery is accepted, contact the sender immediately, instructing them
to arrange to have the product returned to them. If you are unable to resolve the matter or to report the scam, file a complaint with Business Consumer Alliance.
For more tips and other scams that commonly affect businesses, read “5 Deceptive Scams Small Businesses Should Be Aware Of”.
About the Author:
Kim Burge is Business Consumer Alliance’s Vice President of Business Practices. She has over 22 years of experience at BCA, working in various departments. Kim has extensive knowledge with investigating the trends for a broad spectrum of business industries,
evaluating business background information, and counseling companies to improve their business practices. She is insightful of consumer rights and assists government agencies and law enforcement with their investigations to protect consumers from fraudulent
activity. For media inquiries, Kim may be reached by phone at (909) 835-6094.
About Business Consumer Alliance:
Business Consumer Alliance (BCA) is a non-profit company that started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint
information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is
to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization
and who agree to abide by high standards of ethical business practices.