Home » Scam Alert – From One Small Business Owner To Others

Scam Alert – From One Small Business Owner To Others

Local restaurateur warns of scam from marketing service.  Photo provided by Pixabay.com
Local restaurateur warns of scam from marketing service. Photo provided by Pixabay.com

A local restauranteur, with over 30 years of experience owning and operating establishments here and in New York, issued a warning about marketing service Mogl.  Peter Glick, of Roxy’s Diner, The Backdoor and, once upon a time, Fremont Fire Pit, issued a warning about excessive difficulties – and expenses – he encountered after signing on with Mogl in February.

Recently, Glick canceled his partnership with Mogl.  “The promise is that they bring you new customers and you only pay a fee once per customer,” Glick reported, “In fact, the fee is 20% of the customer’s charge amount each and every time the customer comes into your store and uses the card attached to the Mogl promotion.”

Furthermore, Glick pointed out that while promised Mogl would bring new customers to his business, customers that came in were only guaranteed to be new to the Mogl Cash Back Reward Program.  “It was the biggest marketing mistake I have ever made,” Glick acknowledged, “and I’m trying to help other local merchants avoid making the same mistake.”

Local business owner warns others to check credit card statements carefully for excessive charges.  Photo by Steve PB and Pixabay.com
Local business owner warns others to check credit card statements carefully for excessive charges. Photo by Steve PB and Pixabay.com

He advises all businesses who signed up with Mogl to double check their credit card statements.  “My fees were over $3,500 per month,” Glick said, “by the third month, I realized there was something bad happening and cancelled the program.”

Glick signed up with Mogl, over the phone, and over five months his restaurant was charged $7,500.  When Glick asked for a written agreement from Mogl, they claimed that all they had was a recording of the original conversation.  The company also denied any misleading practices, claiming the original contract explains the details of all transactions, yet Glick never signed anything and cannot get a copy of the contract – or the recording.

Glick did cancel his participation in Mogl by speaking with an account executive.  He recommended other participating businesses review their credit card statements, and those considering signing up demand more information first.