Learn how to spot a home business scam

Posted at June 23, 2009

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door to door The home-based business opportunity sector has become a prime target for scammers in today’s Internet world. The Better Business Bureau serving Mississippi offers the following tips on ways to avoid being ripped off in a home business venture:

Be wary of “high income” opportunities as well as those touting instant or quick earnings.
Look for and verify company contact information. Test e-mail addresses and phone numbers for a response within 24 hours. Always be able to speak to someone on the phone rather than relying strictly on e-mail communication.
Watch out for outlandish claims (often in big, bold headlines) and don’t put much stock in income testimonials.
Check online forums on a particular business opportunity.
Confirm the reliability of companies with the BBB.

Frequent scammers

The BBB also warns consumers about the increase in fraud among door-to-door students selling magazine subscriptions. The scam occurs when the peddlers – typically with a hard-luck story or earning money for charity – take orders and then the magazines never arrive.

Because sales representatives are typically high school or college-age, victims easily believe the fictitious sales pitch and often pay too much money. The BBB has received more than 1,000 complaints in the last year from 46 states.

In some cases the students also have been victims. They were hired by a company to sell magazines door-to-door and then never paid promised commissions.

The Federal Trade Commission Cooling Off Rule requires that you must be offered a cancellation form any time you spend more than $25 from door-to-door salesman. You also are allowed three days to cancel the order.

If you are not offered a cancellation form, don’t buy – plain and simple.

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