Scams - Homeworking Scams

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Scams - Homeworking Scams


'Imagine owning your own business, being your own boss, working only a few hours per week, never having to set an alarm clock again…a business that's fun, easy, even exciting work. No staff, no overheads, no bookwork, no selling, working from the comfort of your home.'

Advertisements promoting business and employment opportunities in your home may be deceptive. They may sound good but they don't always tell the full story. Be suspicious if you have to pay a fee to receive more information. Beware of advertisements that make unbelievable claims about job opportunities or potential earnings.

These types of job ads appear to offer paid work for 'stuffing envelopes' but are often a front for phony get rich-quick schemes. You reply to the ad, and usually receive a request for money, after which you're sent a 'plan'. It informs you to place a similar advertisement, photocopy the 'plan' and mail it out to other unsuspecting victims. The only person who makes any money is the promoter who placed the original ad and he or she then moves on.

The targets for phony work home working schemes are usually people who need extra money but who are not able to work outside their home. These ads typically promise 'a large income' for working on projects 'in great demand'. Some promotions stress that 'no experience is necessary', while others indicate that 'no investment is required'.

The one characteristic common to all of these schemes is that you are required to send money before you are able to start work. Some require you to buy materials to produce items, such as sewing baby booties or aprons, making Christmas wreaths or toys, or fabricating other specialty products. You're not told that you have to sell these items yourself and there is usually little or no market for them.

Those behind these schemes are only interested in selling you their scheme. Some promoters say 'no selling required'. They promise to buy back any items you make, as long as your workmanship is 'acceptable'. Of course, these promoters will reject everything you send them by telling you that your finished products do not meet their 'high standards'. You are left to sell the items on your own, if you can.

If you are looking for work to do at home you should consider writing to or approaching local companies who may be able to offer this type of work. Genuine employers will not ask for money in advance before providing you with work.

There are usually about 300 bogus homeworking schemes known to be in operation at any one time. Typically the initial outlay is between is between £10 - £60.

There is no specific legislation to control how outworking or homeworking schemes operate. But local Trading Standards Departments can pursue complaints by reference to existing legislation such as the Trade Descriptions Act, Control of Misleading Advertising Regulations, Stop Now Orders where adopted by the Local Authority, and the Theft Act.

The ASA can also investigate complaints about advertising for these schemes. There may also be some protection for home workers under employment legislation or under the common law. Where there is a dispute about the non payment of wages, they may, depending on their circumstances, be able to take a case to an employment tribunal under the Employment Rights Act 1996. Alternatively, they may be able to make a breach of contract claim through the tribunals or the ordinary courts.

If you are a victim of one of these schemes, notify the ASA, your local Trading Standards Department or the Office of Fair Trading, with a copy of the advertisement, any follow up literature and the nature of you complaint. The sooner enforcement authorities are informed about such scams, the sooner they can take action to prevent others being defrauded.

For more information regarding homeworking contact the National Homeworking Group

Remember, genuine homeworking opportunities typically do not ask for payment in advance.

 

 
Thanks to the DTI for making this information available

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