CHAMBER ALERT*CHAMBER ALERT*CHAMBER ALERT*CHAMBER ALERT

Fraud. Deception. Scam.

Call it what you will, but don’t call it a chamber.

As everyone in the chamber business knows, being a chamber of commerce is very different from calling yourself one. That didn’t stop a for-profit, Florida based company from seeking dues money and encroaching on the livelihood of legitimate chambers.

A recent story in the St. Petersburg (FL) Times reported that chamber members across the state were receiving telephone solicitations from an organization called the “Regional Chamber of Commerce.” The representatives of this regional chamber promise that, with a dues payment, members would receive medical benefits, office products discounts and other types of savings options.

Michelle Orlando, Executive Director of the Florida Association of Chamber

Professionals stated angrily, “This is the first time we’ve ever encountered this type of situation. Many of our chambers use the word ‘regional’ in their names, so this is very confusing and misleading to our membership.” She learned of the situation from FACB Chairman, Russ Sloan, president of the St. Petersburg (FL) Chamber. Sloan was contacted by one of his members describing the telephone solicitation. After that, complaints came in from chambers all over the state, including St. Petersburg, Tampa, Orlando and West Palm Beach.

Further investigation revealed that the address of the Regional Chamber of Commerce was a Mailboxes Etc. postal box. The toll-free number the company provided reaches what is apparently a call center in Toronto, Canada. Promises were generally made to mail information on chamber benefits and services, but, for the most part, the information was never shipped. When asked what region the Regional Chamber of Commerce specifically covers, the response was “the entire U.S.”

“When we find out about something suspicious, we send a note to all 305 chambers in the state via a unique system called ‘Chamber Consumer Alerts,” commented JennyTomkins, chamber services coordinator for the Florida Chamber. “The key for these chambers and their members is to know where their money is going. It can be hard to keep up with—new chambers form every day of the week.”

While there's nothing currently illegal about calling your business a “chamber of commerce” and selling memberships, it does imply a level of commitment that that is not present in simple phone solicitation companies. Among other things, it comes down to community-based work and advocacy: signing ordinances, zonings issues, water, transportation and development issues, lobbying and legislative efforts, awards and recognition programs. These are the types of functions that characterize a legitimate chamber of commerce, which seeks to preserve area businesses, not profit from them.

Other than the pseudo-chamber, there is another kind of operation that targets chamber membership dollars. We like to call it the “passing-through-town” trick. In this case, a member receives an invoice, or a phone request, asking them to “renew” their membership dues. Before state and local chambers are able to file cease and desist orders against these types of operations, the offending parties have already taken the money and high-tailed it out of town.

Finally, a chamber-related advertising scam happens virtually everywhere on a regular basis. According to Cindy Malek, executive Vice President of the Dodge City, Kansas Chamber, at least once a year, a new publishing company comes to town and convinces businesses to place ads in a "Better Living Guide," a "Business or Tourism Directory," or even a "City Map." They make promises for wide distribution and offer free editorial space, but rarely deliver. Most of the time, they secure valuable advertising dollars and disappear.

“Recently, a company visited Dodge City and got away with this ruse,” said Cindy Malek. “We received forty copies of the same publication in the mail on the

same day. When we contacted the company, the salesman responded by saying

that if we received too many books, we could “do whatever you want with them. Throw them in the trash.”

Of course, these aren’t the first instances where chambers are targeted for dues or advertising revenue. And they won’t be the last. Legislation exists to fight some of the illegitimate claimants and more is on the horizon. States are stepping up to the plate to prevent these types of for-profit companies from profiting from the chamber name. In fact, a bill, which has broad support, has been introduced in the Florida State Assembly to trademark the “chamber of commerce” moniker solely for nonprofits.

For the immediate future, it is communication between the chamber and its membership that is the best defense against these scams. In fact, it may ultimately be the only way to prevent these pseudo- chambers from “bilking and booking.”

Greg Roth