Small businesses have been moving to the web for quite some time now. However, not all the online opportunities available are legitimate. In fact, one promising people thousands of dollars working from home has been slapped with a temporary restraining order by a federal court.
Alleged Work at Home Scams
The Federal Trade Commission (FTC) requested the action alleging defendants named in the action lured people into buying an online system by making false promises. The FTC claims the company operated under several brand names including Work At Home EDU, Work at Home Institute and others. The company claimed people could make hundreds of dollars hourly without any experience or skills.
It’s further alleged the defendants used what’s called “native” advertising essentially placing their promotional content beside more information pieces. It was a strategy designed to lure consumers who were searching the Internet for legitimate at home work opportunities.
In one situation, a link was placed for Work At Home EDU beside a Forbes.com article.
Bobby J. Robinson, Michael Sirois, Bob Robinson LLC, Mega Export 2005 Inc., Mega Export USA Inc. and Netcore Solutions LLC have been charged with violating the FTC’s Business Opportunity Rule and the FTC Act.
The FTC’s Business Opportunity Rule requires businesses to make disclosures so consumers can gauge how credible an offer is. The Rule also makes it mandatory for these offers to substantiate earnings claims. The next step is an evidentiary hearing on August 24.
FTC Photo via Shutterstock
This article, "FTC Labels This Online Business Opportunity a Scam" was first published on Small Business Trends
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