DENVER — This holiday season, scammers — and some companies — are counting on shoppers looking for deals that are too good to be true.
But what’s now being called “false premiumization” and fake products are costing Coloradans big. Dozens of Coloradans have reported to the Better Business Bureau that they lost money to these scams.
Denver7’s consumer investigator Jaclyn Allen spoke with victims and industry experts to learn how shoppers can protect themselves.
Mary Hobratschk of Colorado Springs said she believed she found the perfect bargain on Facebook: A $240 cable‑knit cardigan marked down to $59 from a company she thought was based in New York.
"I knew from former experience that I should double-check," said Hobratschk, who did not trust an ad on Facebook. "So, I checked out this company's website and decided that they were legitimate and placed an order."
What arrived weeks later, she said, looked nothing like the photo.
"It looks like a sweatshirt. The colors are garish. There’s nothing about it that resembles the picture on the ad," Hobratschk said.
She also ordered earrings, with the original price listed as $100, that also fell short in real life.
"They appear to be made out of plastic. This is not a stone. It’s not metal," she said.
Return problems made her frustration worse. The site had promised "hassle-free returns" and a 30-day money-back guarantee, but emails show they sent Hobratschk a link to their actual return policy stating customers must pay shipping for returns to a warehouse in China.
"When I contacted them to return it… the bottom line was they wanted it returned to a warehouse in China, and it’s going to cost me more money to return it than I had paid for it originally," she said.
What is false premiumization?
Better Business Bureau Director Meghan Conradt says this is part of a bigger online shopping issue.
"False premiumization is when companies say they’re offering you better service, a better warranty, higher quality products — but they aren’t," she said. "You’re paying those extra prices when really it’s the base model of the product… maybe just a different color or packaging to make it look a little bit better, but the value is not really there."
BBB data shows in the past 12 months, Colorado consumers reported 72 scams costing more than $13,479 in losses — many involving counterfeit or misrepresented products.
"Anybody can put an ad on social media or on the internet, and they get a lot of people to click on those ads, usually with too‑good‑to‑be‑true deals," Conradt said.
BBB tips to avoid costly surprises
The BBB offers these steps to make sure you get your money’s worth:
- Research sellers – Check BBB.org ratings and read customer reviews.
- Know the upgrade – Ask what makes a product “premium” before paying extra.
- Compare prices – Shop around to see if the added cost is justified.
- Read the fine print – Pay close attention to return policies, especially if the return address is overseas.
- Pay smart – Use credit cards for fraud protection and keep receipts and photos in case of disputes.
Mary hopes her story will be a warning others take to heart.
"I was hoping that maybe at least one person would not make my mistake," she said. "In our haste… particularly at the holiday time… I want people to be extra cautious."
