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Shop To Earn

Tracy Coenen, writing at her blog the Fraud Files, has asked for support for a blogger and herself who have written about Shop to Earn's business model.

Tracy summarizes the problem with Shop to Earn in the following way:

"I am going to look into this company more and write up some of my thoughts.

I will say that this has some common red flags of fraud: It seems to have an overcomplicated pay plan.

It relies on an endless chain of recruiting of new members. It seems to only offer a substantial benefit to early adopters."

For her efforts, Tracy received a letter from a Mr. G. Nehra

"I represent ShopToEarn and advise them on direct selling legal matters.

You are on notice to CEASE & DESIST your disparaging and potential libelous references to ShopToEarn and the unapproved use of the ShopToEarn logo on your website.

The ShopToEarn program is legally and economically sound, and the company will take all steps necessary to protect its' rights.

Gerald Nehra
Attroney for ShopToEarn"

Uh, ignoring the "Attroney", this email makes no sense. Well, at least in Canada.

To serve a notice of libel and slander, one has to point out the offending words and usually the notice is served with a demand for a retraction.

How on earth is Tracy or anyone to know what words Shop to Earn is complaining about?

How could anyone draft an apology, even assuming that they were wrong, given this notice?

I haven't even looked at this biz op, but you can bet that Nehra has put in on my radar now, with this poorly drafted notice. What are these boys really up to, I wonder?

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Full post as published by Misleading Advertising Law on July 17, 2008 (boomark / email).