Free laptops - scam or for real?

No such thing as a free laptop

David Lazarus

Friday, June 15, 2007


You might have heard the spot on local radio stations: A company calling itself I Want My Free Laptop is offering free computers in return for ... well, the ads don't really make that clear. But it sounds like a pretty sweet deal.

It's not.

A visit to I Want My Free Laptop's Web site (iwantmyfreelaptop.com) informs you that "our advertiser sponsors pay us for participation in our incentive programs because we drive thousands of consumers to their Web sites. This allows us to give you the hottest rewards simply for taking part in our offers."

You have to wade deep into the site's voluminous fine print to learn that you may in fact never receive that free laptop and that much more is afoot than merely driving traffic to sponsors' sites.

In fact, the people behind I Want My Free Laptop -- we'll get to them in a moment -- are selling you as a commodity to a wide variety of marketers, who in turn are virtually free to do as they please with your personal information.

This isn't a new ploy. Another common online program, as I've written in the past, is to offer a free iPod that, the consumer soon learns, requires filling out a "survey" that's in fact a lengthy marketing pitch, and agreeing to various solicitations that will almost certainly cost you money.

"Some consumers actually do make it through the marketing gantlet and get their 'free iPod,' but we've also heard from consumers who spent hundreds of dollars and countless hours but never got the goods," said Steve Cox, a spokesman for the Better Business Bureau.

"This type of lead-generation advertising is legal, but definitely preys on consumers' trust with banner ads, e-mails and regular mail offers that promise free computers, TVs or iPods, but in the end simply cost people time and money," he said.

Contacting I Want My Free Laptop at the Florida number provided online -- (561) 674-9700 -- connects you with something called the Gift Reward Center. This is basically a call center for promotions of this sort and, according to a service rep, isn't actually behind the promotion.

However, public records available from the Florida secretary of state's office show that Gift Reward Center is actually managed by a company called NiuPercent, which is located just down the road from Gift Reward Center in Boca Raton.

A long paper trail

State records show that NiuPercent changed its name in December to World Avenue Management, which is run by a young entrepreneur named Niuniu Ji. He's been associated with many free-gift promotions, particularly though a company called NiuTech.

NiuTech operated from the same Boca Raton address as NiuPercent but, according to records, merged last year with a Delaware enterprise named World Avenue U.S.A.

World Avenue U.S.A. operates out of the same Boca Raton address as NiuTech and NiuPercent. Records also show that World Avenue U.S.A. is managed by World Avenue Holdings, which, yes, operates out of that same address.

One other company operating out of that address, and which records show is also managed by World Avenue Holdings, is called TheUseful, which is overseeing the I Want My Free Laptop offer.

Ji was unavailable for comment. But Dale Baker, president of TheUseful, issued a statement Thursday in response to my repeated calls to World Avenue.

"TheUseful provides valuable sales leads to its advertising partners and has a successful track record of having delivered thousands of gifts (such as laptops, plasma screen TVs, gift cards) worth millions of dollars to individuals who qualified through completion of the program requirements each year," he said.

"We believe the iwantmyfreelaptop.com offer provides a clear and concise set of terms and conditions that explains the requirements to receive a gift," Baker said.

What are those terms and conditions? Clicking a link at iwantmyfreelaptop.com for "program requirements" -- not that most people would -- reveals enough loopholes and disclaimers to make clear that the free laptop is perhaps anything but.

Among other things, the requirements say participants must:

-- Provide their names, addresses, phone numbers and e-mail addresses.

-- Agree to receive marketing pitches and other communications from both TheUseful and its partners "via e-mail, telemarketing, direct marketing, mobile marketing and any other method."

-- Comply with all provisions of the agreement, including one that says you have to sign up for no fewer than 10 solicitations from program sponsors and can't cancel any of them for at least 60 days.

Even then, TheUseful reserves the right to "substitute any gift with another item of similar value, as determined in our sole discretion; or send you the cash equivalent for the gift, as determined in our sole discretion."

In the privacy policy for I Want My Free Laptop, participants are informed that they could be required at various stages of the program to disclose not just their contact info but also "credit information, Social Security number, health information, and personal preferences regarding lifestyle, products or services."

The policy adds: "We send communications to you ourselves, and your information also is shared with other organizations that may contact you for any purpose by e-mail, phone, text message, U.S. mail or any other means of communication."

Opting out has limits

You can opt out from TheUseful/World Avenue sending you stuff, but this won't apply to all the other marketers who may have also gotten their hands on your info.

Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group, a consumer advocacy organization, said programs like I Want My Free Laptop are designed to get consumers to voluntarily part with reams of personal information in hopes of receiving some freebie in the end.

"These companies encourage you to be a trained monkey and fill in lots of forms that could violate your privacy and cost you money," he said.

The Better Business Bureau of Southeastern Florida links its report on TheUseful to its report on NiuTech, World Avenue's predecessor. It says NiuTech has an unsatisfactory record "due to a pattern of complaints concerning advertising and delivery issues."

"Basically, they're not coming through with their promises," said Al Polizzi, a spokesman for the agency. "They put prizes up but the consumer doesn't get what he believes should be coming to him."

In fact, you could say that anyone who signs up for these sorts of things is getting exactly what's coming to him.

But that wouldn't be right. This isn't the fault of consumers. It's the fault of the companies that run such underhanded programs and marketers that affiliate themselves with these outfits.

Perhaps the attorneys general of California and Florida might want to have a little chat about this.

David Lazarus' column appears Wednesdays, Fridays and Sundays. He also can be heard Saturdays, 4 to 7 p.m., on KGO Radio. Send tips or feedback to [email protected].

This article appeared on page D - 1 of the San Francisco Chronicle