FTC Stamps Out Postal Scam

An operation that sold worthless prep materials for post office jobs that didn’t exist, will give up $105,000 to settle Federal Trade Commission charges that the scam violated federal law.
The FTC charged that the operation misrepresented an affiliation with the Postal Service, the availability of postal jobs, and that getting a passing score on a postal entrance exam guarantees applicants a job. The FTC also alleged that using their test preparation materials would not help anyone to pass the postal exam, contrary to the defendants’ claims, and actually contained false and misleading information.

The FTC alleged that, since at least January 2004, the defendants ran classified ads across the nation in employment guides and newspapers. The FTC alleged the ads led consumers to believe that the defendants were hiring for postal jobs and were connected with, or endorsed by, the USPS. One ad stated:


According to the FTC, the telemarketers assured consumers there were jobs available in the caller’s geographic area and that passing the exam required for postal employment would assure them a postal job. Consumers were charged a “registration fee” of $108.80.

In fact, applicants for many entry-level postal jobs are required to take a postal examination. But the tests are usually offered only every few years in any particular district. Also, there are no job placement guarantees based on score. If applicants pass the test by scoring at least 70 out of 100, they are placed on a register, ranked by their score. When a position becomes open, the local post office looks to the applicable register for that geographic location and calls the top three applicants. The score is only one of many criteria taken into account for employment. Information on postal jobs is available at the consumer’s local post office, and applicants generally receive a free packet of information about required exams. The exams test general aptitude, something that cannot necessarily be increased by studying. More information is available at the Postal Service Web site, www.usps.com.

The settlement brings a permanent end to misrepresentations by the defendants that:

* they are connected with or endorsed by the Postal Service;
* postal jobs are currently available in consumers’ geographic areas where defendants’ advertisements appear;
* consumers would receive study materials which would allow them to pass the postal employment exam; and
* a passing score on the postal exam will guarantee consumers a job with the Postal Service.

The order also prohibits the defendants from misrepresenting any material fact about products they are selling and enters a $2,093,183 suspended judgment against the defendants – the total amount of consumer injury. Based on financial documents filed by the defendants, they will pay $105,000 because they are unable to pay more. If the court finds that they misrepresented their financial status, then they will be liable for the full amount.

The defendants, Jeffrey Charles Lord and his company, Job Resources, Inc., are based in Tennessee.

posted by Consumer Help Web Editorial Team at 10:12 AM |