September 19, 2007
The lure of a new and innovative business opportunity can be hard to resist, especially if it seems easy and doesnt require a huge investment. But consumers can easily be duped by fraudulent get-rich-quick schemes that seem to be multiplying online with each passing day.
Kentucky Attorney General Greg Stumbo has announced a crackdown on such schemes, saying any business opportunity requiring more than a $500 investment and offered to a Kentucky resident requires the offering firm to register with his office.
In addition, the company must post a bond and disclose documents.
Of particular concern, Stumbo says, is an increase in attempts to lure consumers into purchasing training and software for internet-based business and marketing. He says consumers should exercise caution and do careful research prior to purchasing such training or business opportunities.
The Kentucky Office of the Attorney General and the Federal Trade Commission suggest consumers follow these tips before investing in any business venture or work-at-home opportunity:
• Does the ad promise big money for little effort? Fraudulent ads use similar bait: Fast cash. Minimal work. No risk. And the advantage of being your own boss or working from home.
• Before promoters can accept money from potential investors, the law requires that they give investors important disclosure documents. If the promoter does not make the document readily available, interested consumers should find another opportunity.
• Talk to current investors, but beware of paid shills, who work for the company. Visit other business sites in person. And get professional advice if you need it. Do not lose your life savings just because you did not spend a few hundred dollars to talk to a lawyer, an accountant, or another expert.
