Business Blog

The last thing people struggling to keep their heads above perilous financial waters need is an anchor weighing them down. That's why, as of today, businesses must comply with all provisions of new amendments to the Telemarketing Sales Rule designed to curb deception in the sale of debt relief services.

Most importantly, companies that use outbound telemarketing -- or have customers call them in response to ads or other solicitations -- can’t collect fees from customers until:

• they successfully settle or change the terms of at least one of their debts;

Next Wednesday is a banner day for America’s consumers – and a critical deadline for companies in the debt relief services industry to conduct a head-to-toe compliance check-up on their operations. As of October 27th, businesses that call prospective customers to sell debt relief services – or have customers call them in response to ads or other solicitations – have to comply with new amendments to the Telemarketing Sales Rule that make it illegal to charge fees before settling or reducing a customer’s debts.

Owners of small businesses wrestling with tax obligations are sure to have seen the ads.  American Tax Relief LLC promised to settle customers’ delinquent federal and state taxes for a fraction of what they owe, as well as put a stop to tax liens, bank levies, and property seizures.  But according to a lawsuit filed by the FTC, the company charged up-front fees ranging from about $3,200 to $25,000 and offered little in return.

In the holiday classic "Miracle on 34th Street," optimists and skeptics debated the existence of Kris Kringle. Nobody would liken effective advertising self-regulation to Santa Claus, but the National Advertising Division of the Council of Better Business Bureaus (NAD) – located on 36th Street in New York – has made believers out of a lot of people. Kicking off its annual conference today, the NAD is a forum for monitoring and evaluating truth and accuracy in national advertising.

There’s lots of public information out there about people. So it’s no surprise there’s a booming business in the sale of data – and in the sale of services that promise to protect personal information. The FTC’s recent settlement with data broker US Search demonstrates that like any other advertising claims, representations about privacy and security must be substantiated.

Many smaller companies want to extend health benefits to employees, but are concerned about keeping the price affordable.  For people who own their own business or are looking for work, cost-effective coverage can be tough to find.  If you’re in the market for health insurance, make sure that’s what you’re buying.  Some programs pitched to small businesses, the self-employed, and the uninsured sound like affordable health insurance, but actually are medical discount plans.  Although some plans may offer legitimate savings, others take people’s money and provide very little in return.

No, not the doowop song by Gene Chandler, but a form of fraud aimed at small businesses and non-profits. Here’s how the scam works: Con artists send fake invoices to businesses, listing the domain name or URL of the company’s website or a slight variation – like substituting ".org" for ".com." The bills, designed to look like they come from a domain name registrar, say the company owes money for its annual "website address listing" and "search optimization" service. Busy entrepreneurs are led to believe they have to pay to keep the company URL up and running.

The FTC’s first law enforcement action related to the revised Endorsement Guides offers compliance insights for marketers.  In a proposed settlement with Reverb Communications, Inc., the FTC alleged that employees of a public relations agency hired by game developers posed as consumers and posted reviews on Apple’s iTunes store without disclosing that the reviews came from people working on behalf of the developers.