FTC Bans Work-at-Home Operators from Selling Business Opportunities and Coaching Services

On December 14th, the FTC announced that they have settled a case against a company allegedly offering business opportunities and coaching services. The defendants in the case – Bob Robinson, Michael Sirois, and a number of their companies – were charged with violating the FTC Act and the FTC’s Business Opportunity Rule, which 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." Under the settlement, the defendants are banned from selling business opportunities and business coaching services. They are also facing a partially suspended $35 million judgment and are required to turn over  $1.5 million worth of funds and assets. Read the FTC press release here. Many businesses like this engage in telemarketing. Make sure you understand FCC telemarketing laws.

New York Telefunder Being Targeted by State Attorney General

Telefunding business owner Mark Gelvan was banned from telefunding in the State of New York in 2004 after his phone agents allegedly impersonated police officers when they were calling potential donors. Regulators also alleged that Gelvan's company misrepresented how much of the donations would actually go to his charity clients and how much he would keep for himself. Now, the New York Attorney General is taking action against Gelvan again, alleging that he is operating a new telefunding business behind the scenes, with other individuals acting as the business owners on paper. Read an article with more details about the issue here. Telefunders as well as telemarketers should be sure not to impersonate any government employee or agency. They should also never misrepresent what their products or services actually provide or accomplish. This will help reduce complaints and regulatory attention. Learn about charitable telemarketing laws and nonprofit telemarketing laws. Whether your company does for profit or nonprofit telemarketing, make sure you understand all telemarketing rules. Consult with a telemarketing attorney to ensure full telemarketing compliance.