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What is new with eMom? Bad Advice

Wendy Piersall has some bad advice about How to Avoid Home Business Scams and Fraudulent Internet Business Opportunities

Wendy has a very interesting blog, but she has made a serious error about due diligence.

What is her advice and why is it wrong?

Here is her advice and warning signs:

1. Internet Auctions (Both businesses and consumers are scammed in auction sales that never deliver the money/products as promised)

2. Internet Access Service (Trapping people into long-term contracts for internet service by giving them a check with ‘conditions’)

3. Credit Card Fraud (NEVER give a credit card # to prove you are over 18. DUH.)

4. International Modem Dialing (Getting you to download a trojan horse that makes long-distance calls from your modem)

5. Web Cramming (Signing you up for something without your consent)

6. MLMs & Pyramid Schemes (When the primary consumer of the products happens also to be the people who are selling it)

7. Travel & Vacation (Classic bait & switch or bargain packages stuffed with hidden fees)

8. Business Opportunities (Exaggerated earnings claims for a marketing system that is more of a marketing SPAMstem)

9. Investments (Buy into our big-money day-trading system!)

10. Health Care Products & Services (Buy our cancer cure today!)

First, she does not get the right consumer frauds identified - the FTC Consumer fraud list for 2008 [click here]. This is a very old list.

Second, she doesn't understand the difference between franchises and business opportunities.

Finally, she doesn't list any of the 26 States which Regulate Business Opportunities. And the information that these States provide.

Full post as published by Misleading Advertising Law on February 15, 2008 (boomark / email).