International Law

Does NAMA Fight Fraud?

I am a big fan of Trade Associations, of all kinds.

Many people don't know that there is a trade association for vending, National Automatic Merchandising Association, NAMA.

Here is a story from about vending fraud, from one of NAMA's website. Federal Judge Sentences Three In Vending Opportunity Scam @ Vending Market Watch News at AMonline.com

Here is another vending fraud story, "A federal grand jury charged three family members from Wellington, Fla., with conspiracy and money-laundering charges for allegedly bilking investors in a phony candy vending machine business that they operated from June 2001 through April 2005, according to the Star Tribune in Minneapolis, Minn."

But what caught my attention was the editor's note.

"Editor's Insight: The Justice Department and law enforcement agencies are paying closer attention to business opportunity scams. Vending trade organizations should formally thank law enforcement agencies for these actions. Law enforcement professionals, like anyone, appreciate being appreciated.

The National Automatic Merchandising Association and many state organizations have supported efforts to warn consumers about these schemes, but there is no sure-fire way to protect people from their own poor judgment.

Because NAMA is involved in ongoing efforts to fight business opportunity scams, it is one more reason that operators should support their national trade association. 06-22-07 by Elliot Maras"

I have been involved in prosecuting, investigating, and warning about business opportunity frauds for over nine years.

I have interviewed over a thousand people during that time.

Over 95% of the victims were cheated by classic vending, payphone or ATM frauds. Not one of them knew about the NAMA or the Canadian equivalent, CAMA.

Why is this? Well, NAMA's web page on business opportunity fraud is nothing more than a series of links to the FTC pages, without even any links to the 26 states who have business opportunity or seller assisted marketing plans.

NAMA seems content to simply ignore the seamy side of their industry.

Business opportunity laws seem to be known only to regulators. Neither NAMA or CAMA appear to be doing anything to help remedy this situation.

Full post as published by Misleading Advertising Law on November 20, 2007 (boomark / email).