Home-based businesses: Do you really need these services?
The operators of a telemarketing scheme that allegedly took millions of dollars from people trying to start home-based businesses have agreed to settle charges brought by the FTC and the New York and Florida Attorneys General. As part of the settlement, the defendants are banned from selling business development services and work-at-home opportunities, and must surrender more than $15 million in assets.
The FTC alleges The Tax Club called people who were trying to start new home-based businesses and falsely claimed to be affiliated with companies from which the consumers had already purchased products and services. The Tax Club then pitched business development services like coaching, corporate formation, and credit development, claiming that the services were essential to the success of home-based businesses. After an initial sale, The Tax Club called repeatedly to sell additional services at a hefty price – several thousand dollars per service. In the end, new business owners lost their money – either The Tax Club didn’t deliver or the businesses never got off the ground.
If you’re thinking about launching a home-based business, do your homework. Learn about business opportunity scams. If an offer sounds suspicious or you’ve been taken in by a scam, file a complaint with the FTC. Your complaints help us stop rip-off artists, scammers, and fraudsters.