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*FOR IMMEDIATE RELEASE:*
December 18, 2024




*Media Contact:*
Danny Wimmer <[email protected]>






Attorney General Re-Issues Consumer Alert on Risks of Drop-Shipping

*LANSING* — As part of her continuing Holiday Scams Campaign, Michigan Attorney General Dana Nessel is re-issuing her consumer alert, Drop-Shipping: What you Need to Know Before You Buy or Sell Online [ [link removed] ] to caution consumers about the risks associated with this retail method. 

In drop-shipping, sellers act as middlemen but do not retain stock for the products they sell. The seller advertises products online and forwards customer orders to another company — like a wholesaler or manufacturer — for shipping. 

“While drop-shipping is a legal and common retail practice, it’s not without risks,” said Nessel. “Consumers and aspiring entrepreneurs should think carefully before using or investing in drop-shipping schemes. They can promise low prices and quick riches, but often deliver more problems than profits.” 

Consumers are advised to take the following precautions to protect themselves: 


* "Research the product and seller." Use online tools to compare prices and verify product origins. 
* "Be cautious of social media ads." Drop-shippers often promote their goods on platforms like Facebook and Instagram, where fake or counterfeit goods are frequently advertised. 
* "Check for signs of fraud." Suspicious brand names, misspellings, or overly vague product descriptions can indicate a scam. 
* "Understand the risks." Items may arrive late, not match the description, or fail to arrive at all.

The Attorney General’s alert warns entrepreneurs against entering drop-shipping schemes as a “get rich quick” opportunity. Many programs promote expensive seminars or lists of suppliers, which may result in financial losses. 

Sellers who use drop-shipping face significant challenges, including:


* "Quality control issues." Sellers depend on suppliers for product quality and delivery, which can damage their reputation. 
* "Legal liabilities." Suppliers may use fake goods, counterfeit goods, or trademarked logos, leaving sellers responsible for promoting illegal products. 
* "High competition." Saturation in the drop-shipping market often forces sellers to reduce profits. 

To view all the holiday scam alerts, visit the Department of Attorney General’s website [ [link removed] ]. Consumers who suspect fraud can file a complaint with the Attorney General’s Consumer Protection Team at:  

Consumer Protection Team [ [link removed] ] 
P.O. Box 30213 
Lansing, MI 48909 
517-335-7599 
Fax: 517-241-3771 
Toll-free: 877-765-8388 
Online complaint form [ [link removed] ] 

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