Listen-UP work-from-home bizopp operators: the Federal Trade Commission is on the hunt for people who offer bogus business opportunities, or “biz-opps.” If you’re running a deceitful work-at-home marketing scheme, it may be time to go legit or shut ‘er down.
The Latest FTC BizOpp Crack Down
Last week, the FTC announced the seizure of several work-at-home operations that promised prospective participants the world – and then delivered bupkis. The now-neutered scheme worked thusly:
- Phase One: The bizop offered work-at-home starter kits ranging from $37 to $99. Presumably, these kits instructed buyers on how to establish and run their own online marketing companies.
- Phase Two: Once an individual purchased the kit, the bizop marketer added him or her to a mailing list and proceed to bombard their inbox with add-on offers costing between $3,000 and $12,000, like coaching and website development programs, in addition to tax filing and drop shipping services. Buyers were encouraged to put the costs of these add-ons on credit cards. According to the FTC, none of the programs offered were of any value.
- Phase Three: In the third phase of the bizop scheme, marketers pretended to offer coaching services to participants, but instead used the coaching time to pitch more add-ons.
“This case halts a massive scam that bilked consumers out of millions for useless work-at-home kits and business coaching services,” explained Director of the Bureau of Consumer Protection, Jessica Rich. “The defendants duped consumers into thinking they could earn thousands working from home. Protecting consumers from such pernicious schemes remains a top priority,” she concluded.
If you’re not familiar with the FTC’s new bizop rules, it would be wise to cozy up with the guidelines. Violations will cost you a pretty penny – so why not take the time to ensure compliance.
(If you want one of our lawyers to audit your operation, it will run you a few hundred dollars; getting caught could cost you your business, plus a few thousand.)
Speak With An FTC Attorney Today
Are you in trouble with the Federal Trade Commission? Do you need the help of a lawyer who’s successfully helped clients ward off the FTC? If yes, get in touch today. Our firm, Kelly / Warner, has been dealing with FTC-related cases for over 5 years. We know the niche well. Get in touch now to begin the conversation.