Vision Solution Marketing and related defendants marketed services to potential entrepreneurs and people looking to increase their income. One of the defendants’ products was business “coaching,” which cost up to $13,995. But given the numerous misrepresentations cited in the lawsuit filed in federal court in Utah, the FTC said the defendants were certainly not part of the consumer team.
The defendants’ telemarketing business relied on leads provided by other businesses in exchange for cash or a percentage of sales. According to the FTC, the typical customer targeted by the defendants has already bought a questionable work-at-home program advertised online that also encourages buyers to contact an “expert consultant” or “specialist” to see if they qualify for an “advanced” Program. Consumers were put into yet another dilemma when defendants subsequently offered consumers to purchase a business coaching program and then marketed them an additional suite of business services, such as a marketing program and tax guidance.
Many consumers are attracted by the promise of large sums of money. According to one of the defendants’ sales representatives, the “expected revenue range” for the new business was $3,000 to $5,000 per month. What’s more, here’s one thing for sure: “None of the students we’ve built businesses for have ever failed. . . . [T]This is virtually impossible to fail. With the right help, everything will be fine. “
But the Federal Trade Commission says consumers who have dug into their savings are definitely not in a good position. In many cases, the expensive training provided by the defendants consisted primarily of basic information that was freely available online, such as how to sell items on eBay. According to the lawsuit, most people who purchased the defendants’ services had little or no income, and many ended up in deep debt.
You need to read the complaint to understand what goes on behind the scenes of the complex interrelationships that drive such an operation. The lawsuit specifically alleges that the defendants made misleading income claims, misrepresented the nature of their products and services, and repeatedly violated the Telemarketing Rules. Additionally, the FTC alleges that the defendants told potential buyers that they needed detailed financial information to determine whether consumers qualified for the mentoring program. But the defendants used those facts to calculate how much they could charge the man for purported coaching services, according to the complaint.
A federal judge issued a stipulated temporary restraining order freezing the defendants’ assets and prohibiting them from selling business coaching services. But even at this preliminary stage, the case offers objective lessons for future entrepreneurs or those interested in supplementing their income through a home business.
Before spending money on so-called tutoring services, consider options that are closer to home and don’t cost a penny. Reach out to successful business people in your community—for example, your extended family, local business associations, alumni groups, or your place of worship. Many people who have been successful in the business world remember what it was like when they were first starting out and are willing to share their experiences.
Additionally, consider free business mentoring and consulting programs offered by state offices, your area’s college-affiliated Small Business Development Center, and the federal Small Business Administration. (The SBA’s Local Assistance page lists programs in your community.) The FTC also provides resources to help you ask the right questions before spending money on a business opportunity or service.
3 Comments
Pingback: FTC says consumers hit by deceptive business ‘guidance’ claims – Tech Empire Solutions
Pingback: FTC says consumers hit by deceptive business ‘guidance’ claims – Paxton Willson
Pingback: FTC says consumers hit by deceptive business ‘guidance’ claims – Mary Ashley