FTC Obtains Temporary Restraining Order Halting Work-at-Home Scheme

Defendants falsely promised consumers they could earn thousands of dollars from home

At the Federal Trade Commission’s request, a federal court entered a temporary restraining order halting a deceptive work-at-home scheme. The defendants allegedly lured consumers into buying an online system, falsely promising that they would earn thousands of dollars in their spare time working from home.

According to the FTC, the defendants operated under various brand names, including Work At Home EDU, Work At Home Program, Work At Home Ecademy, Work At Home University, Work At Home Revenue and Work at Home Institute. They routinely claimed people could earn “hundreds of dollars per hour from home, without any special skills or experience.”

The defendants used online “native” advertising – promotional content that resembles the non-advertising material beside it – to reach consumers who were researching work-at-home opportunities on the internet. For example, they placed a link to their Work At Home EDU website near an article about working from home on the website Forbes.com.

Bobby J. Robinson, Michael Sirois, Bob Robinson LLC, Mega Export 2005 Inc., Mega Export USA Inc. and Netcore Solutions LLC are charged with violating the FTC Act and the FTC’s Business Opportunity Rule. The Rule 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.

The Commission vote authorizing the staff to file the complaint was 2-0. The U.S. District Court for the Southern District of Texas, Houston Division, entered a temporary restraining order against the defendants on August 8, 2017. The FTC has requested the entry of a preliminary injunction that would halt the scheme until trial. An evidentiary hearing on the request is set for August 24, 2017.

This article by the FTC was distributed by the Personal Finance Syndication Network.