WASHINGTON, DC — Industry leaders are confident that the Federal Trade Commission’s (FTC) new rule on government and corporate identity theft will help combat widespread hotel reservation and mailing list sales scams.
Under the new rule, the FTC can now sue in federal court on behalf of people injured by scammers and impose civil penalties on those caught using company logos to communicate with consumers online or by mail, or spoofing company emails and Web addresses, or falsely implying a business affiliation.
These scams are a recurring problem for organizers like Mark Bogdansky, vice president of trade shows and community engagement for the Auto Care Association. “Until the hotel reservation scam was stopped, I was getting three to four emails a week, either from one of these scammers or from an attendee or exhibitor, asking if they could use my account. Add to that the people who showed up to my events and were told they didn’t have a hotel room… The same thing is true for people who use the lists. I must get two emails a day from these companies,” he said.
The most damaging thing is that participants think their organization has to provide their information to scammers. “Our participants, even though we explain over and over again that these are scams and that we haven’t shared anything, believe that we have. So we lose their trust. And in an age where data is so important, it’s absolutely crucial that your participants trust you to protect their information and their data.”
The association responds by sending cease and desist letters, he said, “and then a new company comes along the next day and does the same thing.”
Related. A strong start to 2024 marked by successful industry advocacy efforts
The fraudulent use of fake websites, phone calls and emails is widespread and pervasive, said Marsha Flanagan, M.Ed., president and CEO of CEM, the International Exhibitions and Events Association, and an ex-officio member of the Exhibitions and Conferences Alliance (ECA). “This problem has plagued our industry for decades. Even for the annual IAEE show, our team receives as many as 75 attempts each year. Multiply that by the more than 10,000 shows that take place in the United States each year.”
ECA has led the charge for this new FTC rule, with the ultimate goal of enforcing stricter measures to stop scammers for good. “Going forward, we urge the FTC to continue its enforcement actions against these scammers,” said Hervé Sedky, ECA Chairman and Chief Executive Officer of Emerald Holding, Inc. “This will not only serve as a strong deterrent to future fraud attempts, but will also ensure effective enforcement of the new rule. These deceptive practices not only compromise the integrity of our events, but also pose significant risks to our clients, particularly small businesses that may struggle to recover from such fraud.”
“We hope this new ruling will stop these companies from creating websites and call centers that commit copyright and trademark violations, steal millions of dollars from consumers and then sow distrust in brands, through no fault of the show organizer or event stakeholders,” Flangan said. “These scammers would face tougher and more enforceable penalties at the federal level. The overall impact is to rebuild trust between shows and their customers, boost business, and ensure that data is protected and used to promote customer centricity and business viability.”
Fraud victims can now report online scams directly to
Contact Mark Bogdansky at mark.bogdansky@autocare.org ; Marsha Flanagan at mflanagan@iaee.com ; Herve Sedky at Herve.Sedky@emeraldx.com