Ways to Avoid Work from Home Scams

Monday, January 2nd 2012

Dear Action Line: I sent Moneyfromhome.com $30 for job placement and, receiving nothing, called the San Antonio Better Business Bureau. It had 30 complaints but no office address. Its address is a “mail drop.” It responded to RipoffReport.com saying “The BBB treats member companies (those paying LARGE annual fees) differently than they treat companies not paying fees. We use a mailing service as we all work at home and do not publish our private addresses.” What the hay’s the deal on this? - F.B., Tulsa.

The Federal Trade Commission filed suit in San Antonio federal district court against Abili-Staff Ltd., Equitron LLC, Pamela Jean Barthuly and Jorg Wilhelm Becker for “falsely promising consumers” that, for up to $89.99, they could access job listings and get refunds if they didn’t get jobs. More than 75,000 lost a total of $3 million to this scheme.

The plaintiffs stipulated to final judgment and order for permanent injunction and monetary relief (with no admission of guilt). The FTC mailed 75,000 refund checks averaging $9.70 to consumers deceived by this. The case is part of FTC’s “Operation Empty Promises,” an effort to protect financially strapped consumers from scams falsely promising job opportunities.

FTC refunds: The refund effort will return $729,700 to scam victims. Reach the refund administrator, Epiq Systems, at 1-877-868-7790, or visit tulsaworld.com/FTCRedress

BBB “F” rating: Abili-Staff, Ltd., has an “F” rating from the Better Business Bureau of Austin as the bureau is concerned about the industry in which it operates. BBB has insufficient info on the firm - requests for business info were ignored.

Work-at-home: Consumers considering work-at-home plans should read the FTC’s “Work-at-home schemes” tulsaworld.com/FTCworkathome and the Bureau of Consumer Protection Business Center’s “Looking to earn extra income? Rule helps you avoid bogus business opportunity offers” tulsaworld.com/BCPbusopp

Bizopp Rule: Envelope-stuffing ads or home craft assembly say a company can help you set up vending businesses. Before you sign anything or send money for a “business opportunity,” read the FTC’s Business Opportunity Rule. Its safeguards ensure you have the needed information for judging the risk.

Disclosure: The rule requires sellers to give prospective investors one-page disclosure documents - at least seven days before they sign contracts or pay anything - offering five key pieces of information: seller’s identity; lawsuits or other legal actions involving seller or key personnel; seller’s cancellation or refund policies (explaining policy terms); whether seller makes earnings claims (if so, seller must give you an “earnings claim statement”) and a list of references. Use these disclosures to fact-check a seller’s claims. Be aware questionable bizoppers name “insiders” as references who give glowing (but bogus) recommendations. Don’t talk just to the people they suggest.

Read more from this Tulsa World article at http://www.tulsaworld.com/business/article.aspx?subjectid=316&articleid=20120101_15_E2_bDearA311822

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