FTC Steps Up Efforts Against Scams
Check out the full story on the FTC's website at http://www.ftc.gov/opa/2011/03/emptypromises.shtm. I'm not sure how this affects the MLM industry. It certainly seems like the FTC is targeting the weak and sickly companies that rely on pure and obvious fraud to spread. Read the excerpt below:
The Federal Trade Commission today stepped up its ongoing campaign against scammers who falsely promise guaranteed jobs and opportunities to “be your own boss” to consumers who are struggling with unemployment and diminished incomes as a consequence of the economic downturn. “Operation Empty Promises,” a multi-agency law enforcement initiative today announced more than 90 enforcement actions, including three new FTC cases and developments in seven other matters, 48 criminal actions by the Department of Justice (many of which involved the assistance of the U.S. Postal Inspection Service), seven additional civil actions by the Postal Inspection Service, and 28 actions by state law enforcement agencies in Alaska, California, Indiana, Kansas, Maryland, Montana, New Jersey, North Carolina, Oregon, Washington, and the District of Columbia.
In a press conference at the FTC, David Vladeck, Director of the FTC’s Bureau of Consumer Protection, was joined by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Greg Campbell, Deputy Chief Inspector of the U.S. Postal Inspection Service; North Carolina Attorney General Roy Cooper; and a California consumer who had bought into a program to start his own Internet business.
“The victims of these frauds are our neighbors – people who are trying to make an honest living,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Under pressure to make ends meet, they risked their limited financial resources in response to the promise of a job, an income – a chance at a profitable home-based business. But these turned out to be empty promises – and the people who counted on them ended up with high levels of frustration and even higher levels of debt.”
Author Kevin Thompson is one of the most sought after MLM Attorney in the country. He owns and operates The Law Office of Kevin Thompson and specializes in providing legal services for startup direct sales organizations. Kevin Thompson has extensive experience in the direct sales space and helps entrepreneurs launch their businesses on secure legal footing. He can be reached from his website here.
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