FTC Stops Another Deceptive Work-From–Home Business Coaching Scheme

The Federal Trade Commission ("FTC") recently charged two Utah individuals and their telemarketing operation with violating the FTC Act and the FTC's Telemarketing Sales Rule by deceptively claiming that their business coaching services could help consumers start home-based businesses that could earn thousands of dollars a month. According to the FTC, the defendants targeted consumers who purchased bogus work-at-home programs online for less than $100, encouraging these consumers to contact a "specialist" or "expert consultant" to see if they qualify for an "advanced" coaching program. Once these consumers called to speak with the specialist/expert consultant, they were routed to the defendants' telemarketers who sold consumers phony business coaching programs and business development services for up to $13,995, largely based on information available to consumers for free on the internet, leaving consumers heavily in debt with no functioning business. The U.S. District