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Avoid falling victim to work-from-home schemes Date published: 7/22/2006 By PORTSIA SMITH By PORTSIA SMITH Working from home can sound like a sweet deal. But if it looks to good to be true, it probably is. Many advertisements for work-from-home businesses say the same thing: "Make thousands of dollars working part time!" "Free postage!" "Paychecks mailed to you every week!" "No experience required! These ads may seem appealing, especially to stay-at-home moms, disabled people or those who have lost jobs due to downsizing. But according to the Federal Trade Commission, the nation's consumer protection agency, ads like these don't always tell the whole story. Many ads fail to mention that some hours of work won't be paid for. Or they don't disclose all the hidden costs or expenses needed to start. A number of these schemes require those who work from home to spend their own money to place newspaper ads, make photocopies or buy the envelopes, paper, stamps, and other supplies or equipment needed to do the job, according to a release from the FTC. The companies sponsoring the ads also may demand pay for instructions or tutorial software. Consumers deceived by these ads have lost thousands of dollars, in addition to their time and energy, according to the FTC and the Better Business Bureau. Tom Gallagher, president of the Better Business Bureau of Central Virginia--which covers the Fredericksburg region, said his office has received a number of calls about the legitimacy of these home-based business opportunities. "The complaints that we receive are clearly related to the promises and expectations advertising that people will earn money stuffing envelopes," he said. "I have never seen any of these envelope stuffing things work." In 1999, the most recent year for which national data is available, work-from-home schemes generated nearly 280,000 inquiries to BBBs across the United States, and more than 5,500 complaints. To raise public awareness and assist law enforcement, the BBB answered 112 work-from-home advertisements around the country and found that nearly 100 percent of the heavily advertised opportunities were fraudulent. The yearlong investigation, called Operation Job Fraud, found that 21 operations were out of business before the study concluded. Another 12 did not respond after applicants sent money, and 10 more stopped responding after an initial inquiry.
Date published: 7/22/2006
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