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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.
Of the 69 remaining, two said the jobs had been filled and the rest sent instructions for setting up another work-at-home company, products to assemble, books and lists of other work-at-home companies to contact or offers for software, books or videos.
The task force identified a variety of work-from-home companies, including envelope-stuffing, product assembly, medical billing, mystery shopping, and business opportunities, such as vitamin sales, auto-dialing machines, selling advertising on the Internet, and telemarketing of videotapes, books and seminars.
Christine Durst, an expert in the industry, said there is a 30 to 1 scam ratio for home-based work opportunities on the Internet.
"What that means is that for every 30 jobs investigated, 29 of them are scams or downright suspicious," she said.
Durst is credited with having founded the virtual assistant industry--personal assistants who work from home--in 1995.
At that time, Durst was the CEO of MyStaff.com, which became one of the Internet's most successful virtual assistant practices with clients drawn from the first wave of businesses in North America and Australia migrating to the Web.
Now, she is co-founder and CEO of StaffCentrix, a leading virtual assistant training firm with offices in Sterling and Connecticut.
Durst and her business partner Michael Haaren, who works out of the Sterling office, will be in the Fredericksburg area today to host a radio program on WFVA to discuss home-based work scams and how to spot them.
To avoid them, Durst suggested paying close attention to the wording and job instructions.
Red flags should include ads that ask for money or start-up fees.
"You should get paid to do work, not pay to work," she said.
Ads boasting exaggerated incomes or including pictures of sports cars and palm trees are usually ploys to pull people in, she said.
During the three-hour local radio program from 1 to 4 p.m., Durst said they will be giving away free copies of their book, "The 2-second Commute," and subscriptions to their weekly home-based jobs bulletin.
Durst said it's easy to see why ads for business opportunities like these appeal to consumers looking to make extra money: They promise good pay for little effort.
But, as many consumers who have answered these ads have learned--and the BBB has found--many work-from-home promotions are nothing but scams.
To reach PORTSIA SMITH:
Email: psmith@fredericksburg.com
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Questions to Ask Legitimate work-from-home program sponsors should tell you--in writing--what's involved in the program they are selling. Here are some questions you might ask: What tasks will I have to perform? (Ask the program sponsor to list every step of the job.) Will I be paid a salary or will my pay be based on commission? Who will pay me? When will I get my first paycheck? What is the total cost of the work-at-home program, including supplies, equipment and membership fees? What will I get for my money? The answers to these questions may help you determine whether a work-at-home program is appropriate for your circumstances, and whether it is legitimate. You also might want to check out the company with the Better Business Bureau, which can tell you whether they have received complaints about the work-at-home program that interests you. But be wary: the absence of complaints doesn't necessarily mean the company is legitimate. Unscrupulous companies may settle complaints, change their names or move to avoid detection. --Federal Trade Commission |
