If you’re an online or affiliate marketer who runs a “get rich quick” operation, the FTC judgment against Jeff Paul’s Shortcuts to Internet Millions, John Alexander’s Real Estate Riches In 14 Days, and John Beck’s Free & Clear Real Estate System should be of particular interest to you.
Well, it looks like the FTC is to be awarded $450 million dollars after finding the named “get rich quick” websites and infomercials to be misleading and in violation of both the FTC Act and the telemarketing sales rules.
FTC Investigation Against Get Rich Quick Scams
After receiving many complaints against the get rich quick defendants, the FTC began an investigation into the business procedures and marketing campaigns of some of the most successful “get rich quick” networks around.
According to reports, the businesses engaged approximately 1 million private citizens with their programs. Consumers paid $39.95 to purchase a program that teaches one how to “get rich quick” via various real estate and Internet businesses. Now, that would have been fine if a respectable percentage of the participants made money, but according to reports, less than 1% of those who gave it a shot made a profit.
What The FTC Deemed Misleading About These Get Rich Quick Companies
The point the FTC lawyers found most corrupt was the use of a “continuity program.” Apparently, the defendants dinged users’ credit cards an additional $39.95 per month to stay “enrolled” in the program. The problem is they didn’t make this fact clear in their marketing material and website disclaimers. Moreover, a “personal coaching program” was made available to consumers for the price of $14,995, but nearly everyone who took advantage of the advanced option lost money.
The FTC put out a statement in which they said this judgment against get rich quick operations was one of the largest the commission has ever won. They also vowed to continue their fight against misleading and false advertising.
If you dabble in affiliate marketing or run an get rich quick program, it’s a good idea to retain the counsel of an affiliate marketing lawyer. Make sure that your operation is on the right side of the law, so that you, too, don’t have the FTC beating down your door.