Consumer Fraud and Seniors (Advance August 4, 2002)

Within the past decade, the marketplace has spotted the “gold in the gray”.  Business has become aware that this aging population is creating demands for products and services adapted to the older consumer.  Although this trend is in many ways beneficial, seniors become prime targets for exploitation and fraud.

In contrast to outright theft, fraud involves persuading an individual to relinquish his or her money through deception.  Fraud is considered a criminal act in Canada.  Areas of concern include home improvement services, magazine subscriptions, jewelry, health products, financial products, and holiday trips.  The Consumers’ Association of Canada observed that complaints about mail-order companies and home-repair services are often made by older adults.

Since seniors are more likely to consume services than goods, they are probably more often subjected to fraud in the service sector.  Seniors reported pressure sales tactics, grossly inflated prices, double billing, higher charges than quoted initially, delivery of shoddy goods or inadequate service and failure to honour guarantees.

Studies have shown that, in comparison to younger adults, elderly consumers tend to be less aware of unethical business practices, more tolerant of substandard goods and services and less likely to pursue a complaint even if it is clearly justified.  Seniors rarely take action beyond alerting the Better Business Bureau and warning family members and others.  Very seldom did the participants mention contacting the police, a lawyer, government consumer bureaus or consumers’ association, although all of these venues may be appropriate depending on the circumstances.  Explanations for the lack of action on the part of seniors include insufficient knowledge of consumer rights, who to complain to, lack of energy to pursue the complaint and embarrassment.

No doubt, a large number of seniors, and perhaps the majority, are as informed and as aware of their consumer rights as the rest of the population.  Many factors can cause a senior to be at risk of falling prey to persuasive arguments, including sensory losses, physical frailty, trusting of others, illiteracy, and social isolation.

To combat the commercial exploitation of seniors requires collaboration among seniors, caregivers, health and social service professionals, the justice system, the media, and the business community. (Adapted from the National Advisory council on Aging Forum collection: Consumer Fraud and Seniors)  For information, please contact the Caregivers Support Network at 1-800-777-2205 or 705-646-7677.

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