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FIB - Scams 101 - Ye Olde Archives
Posted By: Jim
Wednesday, 30 March 2005, at 4:13 a.m.
In response to your post: http://friendsinbusiness.com/board1/index.cgi?read=93115
You never say WHAT the business is.
You only say that you are able to make $5000 in your first month... $250,000 a year.
What do you think the FTC would say to a consumer asking about your particular business offer?
Would you be willing to submit your website to the FTC for their review and comments about it's offering?
After all, if the FTC indicated that you are offering a valid opportunity, you would be able to put that on your website for promotion of your business.
Let's look at what the FTC says about these types of claims:
http://www.ftc.gov/opa/1996/04/wealth.htm
http://www.ftc.gov/bcp/conline/pubs/invest/vending.htm
http://www.ftc.gov/bcp/conline/pubs/alerts/bizopalrt.htm
http://www.ftc.gov/opa/1996/11/misdfort.htm
Just a couple of "exerpts" from the FTC "Could 'Biz Opp' Offers Be Out For Your Coffers?" publication:
... the Federal Trade Commission (FTC) has found - many business opportunity promotions are nothing but scams that take consumers' money up front and fail to deliver on the promises.
Fraud is most often associated with ...work-at-home, and some Internet-related business opportunities.
The ads use similar bait: Good pay (say, $160,000 a year) in a short period (weeks or months) for little effort. They trumpet an ideal work situation - the ability to set your own hours, be your own boss, and work from home.
*** Does this sound familiar?
*** Insert ($250,000 a year) above or $5000/week, etc.
Or you may want to search http://www.consumer.gov or you might take a look at a search sampling of www.FirstGov.gov publications:
http://www.ftc.gov/bcp/franchise/tsweep01.htm
Investigations show that business opportunity scams...
* Make wild and unsubstantiated claims about potential earnings. Include claims about "proven" concepts.
* Rely on high-pressure telemarketing sales techniques to pressure a victim into turning over his or her money.
* Fail to provide prospective investors with a complete disclosure document containing pre-sale disclosures about their experience, lawsuit history, audited financial statements, and substantiation for any representations made about earnings.
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