Work-at-Home Schemes
Want to earn hundreds of
dollars a week
— at home in your leisure time?
Many people supplement their income
in a very easy way.
Let us tell you how... |
Ads like these can be found in newspapers and magazines in every American city. While
you may find such offers appealing, especially if you can't work outside your home,
exercise caution. While some work-at-home plans are legitimate, many are not. Home
employment schemes are among the oldest kinds of classified advertising fraud.
Many ads don't say you may have to work many hours without pay. Or that there may be
hidden costs. Countless work-at-home schemes require you to spend your own money to place
newspaper ads, make photocopies, or buy the envelopes, paper, stamps, and other supplies
or equipment you need to do the job. The companies behind the ads also may demand that you
pay for instructions or materials. Consumers deceived by these ads have lost thousands of
dollars in addition to time and energy.
Common Work-at-Home Schemes
Several types of employment are classic work-at-home schemes.
- Envelope-Stuffing. Promoters usually advertise that, for a
"small" fee, they will tell you how to earn money stuffing envelopes at home.
Later — when it's too late — you find out the promoter never had any employment to
offer. Instead, for your fee, you're likely to get a letter telling you to place the same
"envelope-stuffing" ad in newspapers or magazines, or to send the ad to friends
and relatives. The only way you'll earn money is if people respond to your work-at-home
ad.
- Assembly or Craft Work. These programs often require you to
invest hundreds of dollars in equipment or supplies. You also may be required to spend
many hours producing goods for a company that has promised to buy them. For example, you
might have to buy a sewing or sign-making machine from the company, or materials to make
items such as aprons, baby shoes, or plastic signs. However, after you've purchased the
supplies or equipment and performed the work, fraudulent operators don't pay you. In fact,
many consumers have had companies refuse to pay for their work because it didn't meet
"quality standards." Unfortunately, no work is ever "up to standard,"
leaving workers with relatively expensive equipment and supplies, and no income. To sell
their goods, these workers must find their own customers.
Exercise Caution
Legitimate work-at-home program sponsors should tell you — in writing and for free
— what's involved. Here are some questions you might ask a potential employer:
- What tasks will I be required to perform? (Ask the program sponsor to list every step of
the job.)
- Will I be paid a salary or 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
legitimate and guard against financial loss.
You also might want to check out the company with the consumer protection agency and
the Better Business Bureau in your own area and again where the company is located. These
organizations can tell you if they have received complaints about the work-at-home program
that interests you.
Where To Complain
If you have spent money and time in a work-at-home program and you now believe it
may not be legitimate, contact the company and ask for a refund. Let the company know you
plan to notify officials about your experience. If you can't resolve the dispute with the
company, here are some organizations that may be able to help you:
- The Attorney General's office in your state or the state where the company is located.
The office will be able to tell you if you're protected by any state law that may regulate
work-at-home programs.
- The National Fraud Information Center (NFIC) at
1-800-876-7060, 9 a.m. - 5:30 p.m. EST, Monday - Friday. The NFIC is a private nonprofit
organization that operates a consumer hotline to provide service and assistance in filing
complaints. NFIC helps the FTC and the state Attorneys General by entering complaints into
a computerized database to help track and identify fraud operators.
- Your local consumer protection offices.
- Your local Better Business Bureau.
- Your local Postmaster. The U.S. Postal Service investigates fraudulent mail practices.
- The advertising manager of the publication that ran the ad. The manager may be
interested to learn about the problems you 've had with the company.
- The Federal Trade Commission. While the FTC cannot resolve individual disputes, the
information you provide may indicate a pattern of law violations requiring action by the
Commission. To register a complaint write to:
Consumer Response Center,
Federal Trade Commission.
Washington, D.C. 20580
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