Employment Scams

If you're out of work these days, you're not alone. Unfortunately, scam artists are out there, preying on consumers like you who are just trying to make an honest buck.

Employment Services

If you're looking at employment services to help you find a job:

• Be skeptical of any employment-service firm that promises to get you a job and guarantees refunds if they don't
• Be wary of firms promoting "previously undisclosed" federal government jobs. All current federal vacancies are publicly available, at no charge.
• Be aware that some listing services and "consultants" may place ads that seem to offer jobs when you're really selling information
• Review the contract carefully before you pay any money
• Make sure any contract you sign includes any oral promises made to you

Get Rich Quick Schemes

Scam artists offer a wide array of "get-rich-quick" and self-employment schemes that target consumers who are looking for an investment opportunity, part-time employment, or the chance to start a home-based business.

If you're tempted to respond to an opportunity to make a lot of money fast:

• Be skeptical about "get-rich-quick" advertising claims.
• Ask companies for written substantiation for claims in their presentations, especially those about success rates.
• Be aware that "experts" who endorse a product often are paid by the advertiser.
• Be cautious about "testimonials." They may be paid for. They may not reflect the experience of most consumers.
• Be wary of purchasing a program if company representatives give you evasive answers or aren't willing to answer your questions at all.
• Before you buy, decide whether the price reflects a fair market value.
• Be wary of promises of free money or low-interest government loans. As a rule, these are available only in limited circumstances.
• Don't be pressured to purchase immediately. Good opportunities are not sold through high pressure tactics.
• Before you buy, ask about the company's qualifying requirements and refund policy.
• Check out the company with your local consumer protection agency, Better Business Bureau, and state Attorney Generals office. They may be able to tell you if any unresolved consumer complaints are on file.

Pyramid Schemes

The FTC suggests that you use common sense when evaluating any multilevel marketing opportunity and consider these tips as you make your decision:

• Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
• Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.
• Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
• Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
• Beware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan.
• Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, accountant or lawyer.
• Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering - especially when the claims about the product or your potential earnings seem too good to be true.
• Remember that no matter how good a product and how solid a multilevel marketing plan may be, you'll need to invest sweat equity as well as dollars for your investment to pay off.

You can file a complaint by calling the Federal Trade Commission Consumer Response Center toll-free at 1-877-FTC-HELP (382-4357)or filling out the Federal Trade Commission Consumer Complaint Form online.

General Consumer Rights Message Board for more help