Every year, the FTC posts its stats on consumer complaints received for the last year. The full report can be found here and breaks down consumer complaints by type and number by state. The FTC is also seeking to publicize how consumers can lodge complaints, releasing an animated video of how to file a complaint and giving examples of the types of complaints the FTC handles. Complaints received by the FTC can come through a phone hotline or online. The complaints are housed in the Consumer Sentinel Network, a secure online database available to domestic and international law enforcement with complaints that flow to the FTC, the Better Business Bureaus, the US Postal Service, and the Internet Crime Complaint Center, among others.
So what does this mean for legitimate businesses not engaged in fraud and scam tactics? Know that the FTC and other law enforcement agencies are well coordinated. Know consumer complaints get looked at and not just filed away for an annual stats report. Know the areas where there are more complaints get more enforcement attention. While having a well trained and responsive customer service plan is not a slam dunk defense to deceptive or misleading marketing allegations, having an outlet and remedies available for customers where things do not go as planned may prevent disgruntled calls or emails to the FTC or BBBs to air their grievances. This is one ranking list no industry aspires to make.
Topping this year’s charts are:
Rank - Category - # of Complaints (% of total complaints)
1. Identity Theft: 278,078 (21%)
2. Third Party and Creditor Debt Collection: 119,549 (9%)
3. Internet Services: 83,067 (6%)
4. Shop-at-Home and Catalog Sales: 74,581 (6%)
5. Foreign Money Offers and Counterfeit Check Scams: 61,736 (5%)
6. Internet Auction: 57,821 (4%)
7. Credit Cards: 45,203 (3%)
8. Prizes, Sweepstakes and Lotteries: 41,763 (3%)
9. Advance-Fee Loans and Credit Protection/Repair: 41,448 (3%)
10. Banks and Lenders: 32,443 (2%)
11. Credit Bureaus, Information Furnishers and Report Users: 31,629 (2%)
12. Television and Electronic Media: 26,568 (2%)
13. Health Care: 25,414 (2%)
14. Business Opportunities, Employment Agencies and Work-at-Home Plans: 22,896 (2%)
15. Computer Equipment and Software: 22,621 (2%)