Office of the Attorney General
Attorney General Conway Warns Consumers About Get-Rich-Quick Scams
Attorney General Jack Conway today warned consumers to use caution when purchasing software and training for internet sales and other business opportunities. General Conway’s Office of Consumer Protection has noticed an increase in attempts to lure consumers into purchasing training and software for Internet-based business and marketing as a way to get-rich-quick.
“In these trying economic times, protecting the public from operators of get-rich-quick scams is more important than ever,” said General Conway. “I am committed to protecting consumers from unscrupulous marketers and scam artists who seek to prey on Kentuckians who are struggling financially. In some cases, consumers are investing thousands of dollars in these Internet-based businesses only to find that the money making opportunity is not what was advertised and will not provide the desired return on investment.”
Legitimate business opportunities requiring an investment of more than $500 are required to register with the Office of the Attorney General and provide a bond and disclosure documents. The Kentucky Office of the Attorney General and Federal Trade Commission suggest consumers exercise caution and review the following tips prior to purchasing such training or business ventures or work-at-home opportunities:
- Does the ad promise big money for little effort? Fraudulent ads use similar bait: Fast cash. Minimal work. No risk. And the advantage of being your own boss or working from home.
- Before promoters can accept money from potential investors, the law requires that they give investors important disclosure documents. If the promoter does not make the document readily available, interested consumers should find another opportunity.
- Talk to current investors, but beware of paid “shills,” who work for the company. Visit other business sites in person. And get professional advice if you need it. Do not lose your life savings just because you did not spend a few hundred dollars to talk to a lawyer, an accountant, or another expert.
Consumers should visit the FTC’s web site at http://www.ftc.gov/bcp/conline/edcams/bizopps/coninfo.html for more information on evaluating Internet-based business opportunities or www.ftc.gov/bizopps to help identify and avoid business opportunity scams. Information is also available on the Office of the Attorney General’s website at http://ag.ky.gov/civil/consumerprotection/scams/business.htm. Consumers can contact the Attorney General’s Office of Consumer Protection at 1-888-432-9257 or their local Better Business Bureau office.