WASHINGTON, Sept. 4, 2002 -- A Texas-based promoter who promised to pay consumers $5 for every envelope they stuffed as part of a home-based "business opportunity" program has settled Federal Trade Commission charges that he misled consumers regarding how much he would pay, what similar business owners made, and how much consumers could expect to earn.
Terrence Maurice Howard, doing business as True Techniques and Absolute Mailers, will be banned from any future sale or promotion of work-at-home opportunities, will be prohibited from engaging in deceptive conduct in connection with the advertising or sale of other business ventures, and will pay $12,000 in consumer redress.
According to the FTCs complaint, Howard, based in San Antonio, violated Section 5 of the FTC Act by misrepresenting that consumers would make a substantial amount of money after sending him a registration fee and that he would pay them $5 for every envelope they stuffed.
Howard allegedly marketed the envelope-stuffing business through print and online ads to consumers throughout the United States, in which he promised consumers $2,000 for mailing 400 brochures, with free postage and supplies.
After calling a toll-free number, consumers heard a recorded message that promised them between $2,000 and $4,000 for stuffing the envelopes. The recorded message instructed interested consumers to leave their name and address to get more information. They then received a letter claiming they would earn $5 for every envelope stuffed, after they paid a $35 registration fee to participate in the program.
Contrary to Howards claims, consumers who paid the $35 fee either received nothing at all or received instructions for placing ads in newspapers and on bulletin boards offering the same envelope-stuffing opportunity to others.
