Effective March 1, amendments to the Federal Trade Commission’s Business Opportunity Rule go into effect. The changes implement new disclosures that work-at-home businesses must provide to ensure consumers have the appropriate information they need when considering a work-at-home program.

For decades, Better Business Bureau of Southern Arizona has heard from consumers scammed out of money by work-at-home programs. Since January, BBB has given out more than 175 business reports to southern Arizona consumers interested in local work-at-home companies. And in the past 36 months, more than 10,000 complaints have been filed with BBB’s nationwide.

To help consumers make informed decisions about work-at-home programs, there are five key items work-at-home businesses must now disclose using the FTC approved disclosure form:

1. Its identifying information (i.e. the name, business address, and telephone number)

2. If earning claims are made, the basis for that claim

3. Whether the company, its affiliates or key personnel have been involved in certain legal actions

4. Whether the company has a cancellation or refund policy

5. A list of people who bought this business opportunity within the previous three years

While these new regulations will help consumers better understand these work-at-home programs, consumers still need to be vigilant and cautious. Here are common red flags to watch for that could indicate a work-at-home scam:

1. Non-compliance with the FTC’s new regulations. If a company is not willing to provide you all the information now required, walk away and report them to your BBB and the Federal Trade Commission.

2. Big bucks for simple tasks. Watch out if they promise to pay you a lot of money for jobs that don’t seem to require much effort or skill.

3. You are asked to invest money up-front. If someone asks you to make an advance payment – especially if it’s a big investment, or you don’t have much information about the deal – this is a red flag. (more…)

Better Business Bureau of Southern Arizona is warning potential investors to be on the alert for unsolicited phone calls from salespeople offering to set them up with web-based stores or other Internet business ventures.

Consumers nationwide say they lost hundreds or thousands of dollars to telemarketers who took their credit card information in exchange for promises of future business income. Many complaints involve companies based in or near Phoenix. The businesses include Web Media, Web Media Blogging, ITech Financial Group, Web Media Malls and UPG Marketing.

An attorney in the consumer protection division of the Arizona Attorney General’s Office called the Phoenix region “the Silicon Valley” for Internet investment schemes. She said complainants often claim to have lost $40,000, $50,000 or more.

Kim States, BBB President, said the companies typically prey on seniors and the unemployed, who may be vulnerable to high-pressure sales pitches.

“These callers can be very convincing,” States said.  “They know exactly what buttons to push to get (more…)

As Tucson’s unemployment rate hovers around 8.5 percent, Better Business Bureau of Southern Arizona is warning consumers of three Tucson-based work-from-home companies that are soliciting consumers with questionable offers for employment.

BBB received a complaint against one company, Sweet Success Publications, in which a Maryland consumer, Mary Norris, said that she sent the company $30 for a list of residences she would be paid to mail letters too, but never received a product list, and was not able to get a refund.

“They sent a letter griping at me for contacting the BBB, and told me they had a no-refund policy,” Norris said. “I don’t see how a company can tell you they have a no-refund policy if you never even receive a product to return.”

Sweet Success Publications lists a Tucson P.O. Box numbered 35083, but BBB is not aware of a phone number or a physical address for the company.

Another company, Radall Co. located at 6336 N. Oracle Rd, claims consumers can earn up to $500 per-week in their “spare time” by painting toys at home, and a third company, Home Employment Agency, claims consumers can be paid for selecting products off a list and posting them on eBay.

“A lot of people are desperate for work and this creates a great opportunity for scammers,” said Kim States, BBB President. “It’s important for consumers to thoroughly research any potential work-at-home job opportunity, especially before sending money or handing over personal information.”

BBB recommends looking out for the following red flags when searching for a job:

Red Flag: The employer offers the opportunity to become rich without leaving home
While many legitimate businesses allow employees to work from home, there are also a lot of scammers trying to take advantage of senior citizens, stay-at-home moms, students and others looking to make money conveniently from home. Job hunters should use extreme caution when considering a work-at-home offer and always research the company with their BBB first www.tucson.bbb.org.

Red Flag: The employer asks for money upfront
It is rarely advisable for an applicant to pay upfront fees or make a required purchase to get a job. BBB often hears from job hunters who paid a phony employer for background checks, training for jobs that don’t exist, or for “kits” that are required to perform the work. Always research the job thoroughly (more…)