BBB Warning: Scholastic School Supply Scam Targeting Area Schools with Phony Invoices

BBB serving Eastern Michigan and the Upper Peninsula is warning area schools about Scholastic School Supply, purportedly located in Las Vegas, NV and Sewell, NJ, which is sending phony invoices to schools around the nation. Schools from more than 22 states, including Michigan, have complained about receiving invoices for English-Language Arts workbooks they never ordered or received.

The phony invoices, all for the same $647.50 amount, match the description of the workbooks to the grade level of the school being targeted. For example, an early childhood school’s phony invoice would state it was for Pre-kindergarten level books while a junior high school’s invoice would say 8th grade. They are also marked as “common core standards aligned”, making use of the popular buzz words in education today. Unwary schools may be tricked into paying the phony invoices by the name of the company, which is similar to a well-known educational book company, Scholastic Inc.

According to Kyle Good, Senior Vice President for Corporate Communications at Scholastic Inc., the phony invoices are not being sent by Scholastic Inc. “Scholastic School Supply is not affiliated with Scholastic. It is a company that is illegally using Scholastic’s name and trademark,” Good said. “We only recently became aware of them, but our legal department has demanded that they cease and desist using Scholastic’s name and trademark, which they have agreed to do but have not done yet.”

BBB cautions schools and school districts across the region to take the following steps to prevent becoming a victim of this scam.

• Train your staff so they are aware of the red flags for potential scams.

• Assign designated buyers within your school or district and document all purchases. Save copies of purchase orders and receipts.

• Check all documentation before paying bills. Institute strict accounting controls. Check purchase order numbers to be sure they match your actual purchase orders.

• Although the business may threaten to send the bill to a collection company if you don’t pay, if you’ve determined that the invoice is phony, don’t pay it.

• Report any fraudulent invoices to:

• Your local BBB. This helps us track scams in the area and warn others about them.
• The Federal Trade Commission – 877-382-4357 or ftc.gov/complaint
• Invoices that arrive via US mail can also be reported to your local Postal Inspector by calling 877-876-2455.