ftcThe FTC recently obtained almost a million dollars in refunds for consumers duped by a business opportunity. The money was obtained from the government seizing and liquidating defendants’ assets.

Defendants were selling a business based on video rentals and requiring that consumers pay to get involved in the business and buy the machines (tools of the trade). Critically, defendants made income promises and that consumers would easily get their money back from the profitable business. Of course, they instead lost money. Since defendants had no basis for making the income claims, among other issues they ran afoul of the FTC’s Business Opportunity Rule.

Lesson: Be wary of income claims and selling an easy home business scheme that someone has to pay to get into.

Stating income claims often makes it very easy, too easy, for the FTC to bring a claim which results in asset seizures.

Filed under: Uncategorized

Like this post? Subscribe to my RSS feed and get loads more!