E. Phony Employment Schemes

Many women seek to work part-time from their homes and are often exposed to phony advertisements and employment scams promising large income for part-time work or offering jobs with unlimited earning potential. The following is an example of a typical ad:

OVER $1000 PER WEEK possible by working at home.

Manage your own time; no prior experience necessary.

Newspapers are filled with ads for such jobs. However, many of these ads are misleading, Applicants sometimes travel great distances at their own expense to apply. They then learn that a large amount of some product (for example, $5,000 worth) must be purchased in order to sell and be hired.

Tip:As a general rule, be skeptical of work-at-home employment ads. Many ads turn out to be envelope-stuffing pyramid schemes requiring people to purchase introductory mailing lists. These lists actually cost more than you can possibly earn from work-at-home activities.

Always beware of companies you can't communicate with by telephone, especially those that only list a post office box address. This is because there may be no one to reach when you have questions about the work or have not received agreed-upon payments.

It is also a good idea to understand how much money and time you will be required to expend to get started and whether the job requires special training or skills. Inquire about refund policies. Once a finished product is completed by you, who is required to sell it?

Most importantly, never commence work at home until you understand the amount of compensation and how often you will be paid. Avoid working for long periods of time without being paid; demand to receive payment on a regular basis (never less than once a month). That way you can cut your losses if the company misses a payment.

Finally, if you are buying a work-at-home franchise, demand to review all the written documents concerning the venture, including the prospectus, before you invest. Speak to your lawyer, accountant and similar franchise owners for advice whenever possible.

If you believe you have been victimized by an employment scam or a work-at-home advertisement, you have options. You can contact a lawyer or Legal Aid service to protect your rights and take action on your behalf. Such action could include filing a private lawsuit based on fraud and misrepresentation. Some lawsuits even allow you to sue the officers of an employer in their individual capacities. If the amount of money is relatively small, e.g., under $3,000, and the employer is located nearby, you might consider suing the company yourself in small-claims court in the county where the company maintains a principal office.

Additionally, you can contact the nearest regional office of the Federal Trade Commission, the Better Business Bureau, or the U.S. Post Office. Numerous federal and state laws have been enacted, including the Uniform Deceptive Trade Practices Act, the Racketeer Influenced and Corrupt Organizations Act (RICO), and other mail and labor statutes, preventing organizations from engaging in a variety of phony employment schemes or using the mails to further such schemes.

The Federal Trade Commission has the authority to investigate claims and impose cease and desist orders prohibiting the continuation of illegal activity by phony employers. Each state's attorney general's office maintains a division for labor fraud and other related deceptive employment practices. In certain cases, the U.S. Post Office has the power to issue a court order preventing employers from using the mails or receiving mail.

Whenever you are in doubt about a particular employer or an individual representing an employer offering a potentially lucrative work-at-home proposition, contact your local Better Business Bureau. Explain the proposal to a representative. Ask for his or her opinion. Inquire whether anyone has complained about the organization in the past. Most Better Business Bureaus maintain lists of employers and individuals accused of engaging in phony employment-related practices. Obtaining such information before spending money in a dubious venture is a wise move.