FTC Obtains Temporary Restraining Order Halting Work-at-Home Scheme
Defendants falsely promised consumers they could earn thousands of dollars from home
At the Federal Trade Commission’s request, a federal court entered a temporary restraining order halting a deceptive work-at-home scheme. The defendants allegedly lured consumers into buying an online system, falsely promising that they would earn thousands of dollars in their spare time working from home.
According to the FTC, the defendants operated under various brand names, including Work At Home EDU, Work At Home Program, Work At Home Ecademy, Work At Home University, Work At Home Revenue and Work at Home Institute. They routinely claimed people could earn “hundreds of dollars per hour from home, without any special skills or experience.”
The defendants used online “native” advertising – promotional content that resembles the non-advertising material beside it – to reach consumers who were researching work-at-home opportunities on the internet. For example, they placed a link to their Work At Home EDU website near an article about working from home on the website Forbes.com.
Bobby J. Robinson, Michael Sirois, Bob Robinson LLC, Mega Export 2005 Inc., Mega Export USA Inc. and Netcore Solutions LLC are charged with violating the FTC Act and the FTC’s Business Opportunity Rule. The Rule requires business opportunity sellers to make certain disclosures to help consumers evaluate the opportunity, and prohibits such sellers from making earnings claims without adequate substantiation.
The Commission vote authorizing the staff to file the complaint was 2-0. The U.S. District Court for the Southern District of Texas, Houston Division, entered a temporary restraining order against the defendants on August 8, 2017. The FTC has requested the entry of a preliminary injunction that would halt the scheme until trial. An evidentiary hearing on the request is set for August 24, 2017.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics, including business opportunity scams and what you need to know before starting your own business, and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Small business owners can also learn more at ftc.gov/SmallBusiness.