Blog Posts Tagged with Franchises, Business Opportunities, and Investments

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How an “invention promotion” outfit demoted the truth

It sounds like there was some “inventing” going on at Florida-based invention promotion firm World Patent Marketing, but a Preliminary Injunction in a case brought by the FTC suggests it wasn’t the kind that unsuspecting consumers bargained for when they forked over millions of dollars based on the defendants’ misleading promises about patenting and promoting their products.

New FTC website helps small businesses

When scammers and hackers attack small businesses, it hurts not only the businesses’ reputations and bottom line, but also the integrity of the marketplace. Today, FTC Acting Chairman Maureen Ohlhausen announced a new FTC website, FTC.gov/SmallBusiness, to help business owners avoid scams, protect their computers and networks, and keep their customers’ and employees’ data safe.

Pushing the envelope?

There are oldies but goodies. Then there are oldies and baddies. The FTC warns people looking for business opportunities to watch out for trendy tech scams and retro rip-offs. A New Jersey-based outfit cranked the Wayback Machine into overdrive by putting a contemporary spin on what may be one of the granddaddies of all bogus bizopps.

FTC alleges company’s practices are “patently” deceptive

Threats of imprisonment, warnings about extortion, and a security team allegedly comprised of ex-Israeli Special Ops trained in Krav Maga? It sounds like an action-packed movie plot, but it’s all related to a complaint filed by the FTC. And you’ll never guess the nature of the defendants’ business.

They sell patent and invention promotion services – or at least that’s what defendants World Patent Marketing, Desa Industries, and CEO Scott Cooper claim.

Celebrating small business during National Consumer Protection Week

Today kicks off National Consumer Protection Week, but what the FTC does to protect consumers is only part of the story. We also work hard to help small business get down to business. Here are just a few examples of what we’re doing to protect your business from deceptive practices.

$20 million FTC settlement requires Uber to have proof for earnings, auto financing claims

In promotional materials to attract prospective drivers, ride-hailing company Uber Technologies touted how much money drivers would earn and the favorable terms they could get by financing a car through Uber’s Vehicle Solutions Program. But according to an FTC complaint, Uber exaggerated those earnings claims and misrepresented the terms of its Vehicle Solutions Program.

Redress checks and compliance checks: Lessons from the FTC’s Herbalife and Vemma cases

As part of the FTC’s historic $200 million settlement with Herbalife, about 350,000 Herbalife distributors should be watching their mail for a partial refund check. The FTC has more information about the refunds and advice for people thinking about investing in a multilevel marketing opportunity.

Edge of ‘17

Just like the white winged dove sings a song,” you can count on the BCP Business Blog to celebrate the “Edge of Seventeen” – 2017, of course – with a recap of in-case-you-missed-it developments from 2016. (Sorry, Stevie Nicks. That was a stretch.) In no particular order, here is our take on ten noteworthy consumer protection actions from the year gone by.

Dismantling a pyramid: Lessons from the Vemma settlement

Promoting a “Young People’s Revolution,” multi-level marketer Vemma pitched its business opportunity to college students and other young adults as a big-money, fast-lane alternative to “the traditional 9-to-5.” In 2015, the FTC sued Vemma and related parties, alleging that its smoke-and-mirrors earnings claims were obscuring the true nature of what Vemma was up to.  As a result of an FTC settlement, there’s a revolution underway all right.

It’s no longer business as usual at Herbalife: An inside look at the $200 million FTC settlement

Multi-level marketer Herbalife will pay $200 million back to people who were taken in by what the FTC alleges were misleading moneymaking claims. But when it comes to protecting consumers, that may not be the most important part of the just-announced settlement. What could matter more than $200 million? An order that requires Herbalife to restructure its business from top to bottom – and to start complying with the law.

Golden fleece?

The Treasure of the Sierra Madre. The Italian Job. The Lords of the Rings. The quest for gold is a common theme in action films. But for many consumers who sent money to Encino, California-based Discount Gold Brokers, a lawsuit filed by the FTC alleges that the adventure has turned into a horror movie.

Cents and centsibility

Please don’t tell the other entries in the Code of Federal Regulations – we wouldn’t want to stir up jealousies – but Business Blog readers have probably detected our fondness for 16 C.F.R. § 304.

When teamwork helps the scheme work

Remember the scene in the movie “Bull Durham” where veteran Crash Davis is prepping rookie Nuke LaLoosh for a TV interview and schools him on clichés about teamwork? “I’m just happy to be here. Hope I can help.” They don’t just apply to baseball. Most enterprises rely on help from others on the team. Unfortunately for consumers, that includes questionable outfits that need another company’s help to accept credit cards.

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