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Work 'Opportunities' to Good to Be True?

Elisabeth Leamy, the ABC New Consumer Correspondent, writes:

"Vending machines. Display racks. FCC radio licenses. Medical billing businesses. Internet kiosks. These are some of the most common fraudulent business opportunities offered by con artists.

What makes them scams? High startup costs, grossly overestimated earnings potential, small or poor-quality territories and products nobody wants. Fraudulent business opportunities are advertised in newspapers and magazines, on the Internet and through infomercials.

The people pushing these "opportunities" promise you can earn big money even if you have no experience. They claim the opportunity is only going to be available for a short time so you need to make a quick decision.

They say it's a "sure thing" that will set you up for life. They gush that you can work from home and set your own hours. They promise to coach and support you every step of the way. And they tell you the very same program made them rich

."

Ok, not bad, not great.

What about the advice for avoiding these frauds?

Uh, now we run into a bit more of a problem.

Her advice:

"Do a background check on the company by contacting the Better Business Bureau, your county and state consumer protection offices and your state attorney general.

Ask if the company has any unresolved consumer complaints."

No, no and double no.

The BBB knows nothing about biz op fraud - neither will your state AG reveal what investigations they may have underway.

There is only one sure test: check whether the

biz op distributor is registered

with their state regulatory agency, if not do not invest.

(If they are registered, then you need to do more work.)

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• Legitimate Work From Home Business [via Zemanta]
• Business 'Opportunities' or Scams? [via Zemanta]
• The B.B.B. Wants to Advise You Before You Buy [via Zemanta]

Full post as published by Misleading Advertising Law on June 16, 2008 (boomark / email).