Wednesday, December 05, 2007

  FTC Closes Envelope On Work-At-Home Firms

The Federal Trade Commission has announced the conclusion of cases against firms targeting "work at home" employers. We wrote about the initial FTC charges earlier this year.

Since then, the federal agency has amended its complaint and judgments have been entered against multiple defendants at an individual and corporate level. The new FTC statement does not accuse any of the entities of wrongdoing, but instead says that monies were received when that they were not entitled to.

We believe that more important than any particular fine or criminal case the agency could have pursued through the Justice Department is the warning sent to the lucrative industry of luring unsuspecting consumers into an arrangement where the consumer not only doesn't make any money, but often is the only party paying any money. With repeated crackdowns, those engaged in improper business activities designed to cheat consumers have clear notice from the federal government that consequences will occur when caught.

Meanwhile, if a work from home or envelope stuffing deal sounds too good to be true, call your state's local employment commission and your local or state consumer protection office to check out the company before doing anything. Deals that sound too good often aren't good.

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