Consumer Alert
High school grads: protect yourself from scams
By
Ari Lazarus
Consumer Education Specialist, FTC
June 13, 2023
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Congratulations — it’s time to graduate! Whether you or someone you know is off to college in the fall, already has a job lined up, or is still figuring out next steps, there’s a lot to do to prepare. The FTC’s Financial Adulting 101 webinars and materials offer advice to help protect you or your favorite recent graduate from scams. Keep reading to learn more.
- Join one of the FTC’s Financial Adulting 101 webinars on June 20th and June 22nd. You’ll learn about credit basics, how to protect yourself from identity theft, and how to spot and avoid scams.
- Check out Consumer.gov. Looking for just the basics? You’ve come to the right place. Consumer.gov has information on how to rent your first apartment, buy your first car, check your credit history, and more.
- Sign up for Consumer Alerts. Find out about the latest scams — and how to avoid them.
As recent grads step into the next phase of life, they may come across things like job scams, phishing scams, or dishonest business practices. The FTC wants to know about it. Tell us at ReportFraud.ftc.gov.
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Consumer Alert
Business coaching and real estate investment scheme targets Spanish speakers
By
Cristina Miranda
Consumer Education Specialist, FTC
June 14, 2023
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Scammers are always looking for people to lure into schemes, in any language. The latest twist: scammers placing social media ads in Spanish, inviting people to free “seminars” where they’ll learn how to profit from an online business or real estate investments. But will you make money? Or is the company that is speaking your language scamming you?
According to the FTC, that’s what happens with a company called Vision Online, Inc., doing business as Ganadores Online and Ganadores Inversiones Bienes Raíces. The company uses social media ads to get Spanish speakers to come to free in-person seminars, which then pitch three-day workshops in Spanish. Like similar training schemes the FTC has shut down, Ganadores says they’ll teach people how to make money selling on Amazon or investing in real estate.
But the FTC says these seminars and workshops are sales events. Ganadores — which translates to “Winners” in English — uses big money claims, which the FTC says are false or baseless. The company tries to get people to spend thousands on packages that supposedly coach, train, or mentor them in running an online store or real estate investing. If buyers realize afterwards that they’ve been scammed, they then find they had only three days to cancel and get money back. And if Ganadores agrees to give some money back, they make people sign contracts stopping them from posting bad reviews about the company.
To avoid a business coaching or real estate investment scam:
- Research the company and offer online. Use words like “complaint”, “review”, or “scam” to see what people say about it before paying.
- Question promises of big money or profits. All investments have risks. Only scammers guarantee success or a return on an investment.
- Read success stories and reviews with skepticism. Many are faked or misleading. Look at different sources and well-known websites for trustworthy and impartial expert reviews.
- Don’t sign contracts telling you not to say anything bad about a company. If someone tells you to, stop. That’s a sign of a scam and illegal. Tell the FTC at ReportFraud.ftc.gov.
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For Release
FTC Acts to Stop Real Estate and Online Commerce Coaching Scheme ‘Ganadores’ Targeting Spanish-Speaking Consumers With Brazen Money-Making Pitches
Federal court temporarily halts alleged unlawful conduct, freezes assets; defendants previously worked for similar operations targeted by FTC
June 13, 2023
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Jobs
- Work-at-Home
- Going into Business
- deceptive/misleading conduct
- Advertising and Marketing
- Online Advertising and Marketing
In response to an actionfiled by the Federal Trade Commission, a federal court has entered a temporary restraining orderagainst the operators of a Florida-based business opportunity and real estate investment training scheme known as Ganadores Online and Ganadores Inversiones Bienes Raíces. The FTC charges that the companies behind Ganadores, their owners, and key employees targeted Spanish-speaking consumers with brazen and false money-making pitches for online businesses and real estate investments.
Among other requirements, the order prohibits the defendants from making unsupported marketing claims, violating the Business Opportunity Rule and Cooling Off Rule, and from interfering with consumers’ ability to review Ganadores and its products. The court has appointed a temporary monitor over the Ganadores companies, instructed the companies to preserve their assets, and frozen the assets of their owners and principals.
According to the FTC’s complaint, the Ganadores scheme has targeted Spanish-speaking consumers using false or unfounded promises that its “infallible system” can help consumers find financial freedom, replace their day jobs, and give their families financial independence.
“This scheme made grand promises of life-changing returns in Spanish, but hid key terms in English-language contracts that many consumers could not read.” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “They took millions of dollars from Spanish-speaking consumers seeking to better their lives and provide for their families, and it’s time to hold them accountable for the significant injury they have caused.”
The FTC alleges that individuals in leadership positions with Ganadores—Richard Alvarez, Robert Shemin, and Bryce Chamberlain—previously participated in a similar scheme, Zurixx, that was sued by the FTC in 2019. The FTC also alleges that Richard and Sara Alvarez took part in FBA Stores, another similar scheme sued by the FTC in 2018.
The structure of the Ganadores operation closely mirrors those prior schemes. For example, according to the FTC’s complaint, Ganadores starts with social media and other online advertising touting free “seminars” coming to the viewer’s area where Richard Alvarez and Shemin will share supposed strategies to make big money in real estate.
In fact, the FTC charges, these seminars are nothing but a sales pitch for the company’s three-day workshops, which cost consumers hundreds of dollars to attend. At the seminars, company salespeople claim that those who attend the workshops will learn everything they need to know to make money either running online businesses or investing in real estate.
The workshops, however, are just another step in a sales funnel that points attendees to pay more than $28,000 for “by the hand” mentoring services that will supposedly result in purchasers making six-figure incomes.
While consumers are promised one-on-one mentoring by experts in online sales or real estate, six-figure incomes, and access to special money-making software, the FTC charges that the “mentoring” rarely delivers on Ganadores’ promises. Customers often interact with mentors in large group calls, are told to use public websites like Google or Zillow in lieu of the company’s often-faulty software, and they do not earn back the money they paid for the mentoring, let alone earn six-figure incomes.
The FTC charges that when consumers realize that Ganadores’ services are not what they promised and seek refunds, the defendants unfairly rely on a clause buried in the sales paperwork that gives consumers only three days to seek a refund. The complaint also charges that while the company’s marketing and sales are conducted largely in Spanish, the company’s contracts with their disclosures are often provided in English, despite the fact that many of their customers have limited to no English fluency.
According to the FTC, Ganadores and its principals, along with the companies behind the scheme (Vision Online, Inc., Ganadores IBR, Inc., Vision Online Digital, LLC, Vision Online English, LLC, Vision Online Latino, LLC) have pocketed millions of dollars from consumers while violating numerous laws, including the FTC Act, the Business Opportunity Rule, the Consumer Review Fairness Act, and the FTC’s Cooling-Off Rule.
The FTC is asking the court to permanently stop Ganadores’ unlawful practices and return funds to consumers injured by the Ganadores scheme.
The Commission vote authorizing the staff to file the complaint was 3-0. The complaint was filed in the U.S. District Court for the Middle District of Florida.
NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The FTC staff attorneys on this matter are J. Ronald Brooke, Jr. and Virginia G. Rosa of the FTC’s Bureau of Consumer Protection. The FTC would like to thank the Orlando Police Department for their assistance in the matter.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Contact Information
Contact for Consumers
FTC Consumer Response Center
Media Contact
Office of Public Affairs
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Consumer Alert
The INFORM Consumers Act and online marketplaces: What to know
By
Alvaro Puig
Consumer Education Specialist
June 14, 2023
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Have you ever bought something through an online marketplace where third parties sell their products? You’re not alone. Millions of people have. But have you ever wondered who the seller was? Or where they were located? Or how you’d contact them if you had a question about a product?
There’s a new law designed to shed some light on transactions on these marketplaces. The INFORM Consumers Act is designed to deter criminals from selling stolen, counterfeit, or unsafe items through online marketplaces. It also gives shoppers information about sellers and a way to report questionable activity.
The Act says online marketplaces must disclose contact information about many third-party sellers of new or unused consumer products on their product pages or in order confirmation messages. Shoppers could use the information to learn more about a seller they’re not familiar with.
The online marketplace also must give shoppers a way to report suspicious conduct. What might a shopper consider to be suspicious activity?
- They get an item that looks to be fake or counterfeit.
- They get an item that’s different from what they ordered — maybe it doesn’t look like the picture on the product page. Or it came in a different quantity.
- They get an item that has unexpected signs of deterioration or use. Or that’s expired.
- They see a seller advertising branded merchandise at unusually low prices.
Shoppers may not see this information for all third-party sellers — the law covers only “high-volume” third-party sellers that meet specific sales thresholds. To learn more about the law, which takes effect on June 27, 2023, check out Informing Businesses about the INFORM Consumers Act.
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Do you know a recent (or soon to be) high school graduate? Whether they’re planning to go off to college in the fall, have a job lined up, or are still figuring out their next steps, there are some Adulting 101 basics that can help along the way. In this 30-minute webinar, we’ll talk about understanding credit, how they can protect themselves from identity theft, and how to spot and avoid scams.
To join the webinar on June 20, 2023 @ 3pm ET/12pm PT:
- URL: https://ftc.zoomgov.com/j/1601588579?pwd=RmlMd3JleXp1V0tIcmdMVnM5Rmhudz09
- Webinar ID: 160 158 8579
- Passcode: 546747
- By phone: (for higher quality, dial a number based on your current location): +1 646 828 7666 US (New York); +1 669 216 1590 US (San Jose); +1 551 285 1373 US; 833 568 8864 US Toll-free
Can’t make the 6/20 webinar? We’ll be offering another session on Thursday, June 22nd at 12pm ET/9am PT.
Thank You,
FTC’s Division of Consumer and Business Education
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Imposters prey on families preparing for the funeral of a loved one
By
Alvaro Puig
Consumer Education Specialist
June 15, 2023
We’re hearing about a new scheme that involves imposters preying on people who are grieving the loss of a loved one. The imposters pretend to be from the funeral home and say that, unless the family pays more money immediately, the funeral will be canceled. Can you imagine anything more despicable?
If there was a Scammers Hall of Shame, this one would make the Top 10 List, without question.
Here’s how to spot and avoid this scam:
Resist the pressure to act immediately. Honest businesses will give you time to make a decision. Anyone who pressures you to pay or give them your personal information is a scammer.
Contact the funeral home directly. Use a phone number that you know is real, not one you got from the scammer’s text, email, or phone call. If you don’t know it, you’ll find it on the General Price List you got from the funeral home.
Know how scammers tell you to pay. Scammers want to get your money immediately, and in a way that makes it hard to track them down and hard for you to get your money back. Never pay someone who insists you pay with a wire transfer, cryptocurrency, or a gift card. And never deposit a check and send money back to someone.
If someone tried to rip you off, report it to the FTC at ReportFraud.ftc.gov.
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Business Blog
Scammers impersonate funeral home staff to prey on mourning families. Can it get any lower?
By
Alvaro Puig
June 15, 2023
There’s a new scheme that involves imposters preying on people who are grieving the loss of a loved one. The imposters pretend to be from the funeral home and say that, unless the family pays more money immediately, the funeral will be canceled. Can you imagine anything more despicable? That’s why we want to alert members of the funeral industry about the scam and hope other businesses will warn their employees and people in their community.
If there was a Scammers Hall of Shame, this one would make the Top 10 List, without question. Here’s how to spot and avoid this scam:
Resist the pressure to act immediately. Honest businesses will give you time to make a decision. Anyone who pressures you to pay or give them your personal information is a scammer.
Contact the funeral home directly. Use a phone number that you know is real, not one you got from the scammer’s text, email, or phone call. If you don’t know it, you’ll find it on the General Price List you got from the funeral home.
Know how scammers tell you to pay. Scammers want to get your money immediately, and in a way that makes it hard to track them down and hard for you to get your money back. Never pay someone who insists you pay with a wire transfer, cryptocurrency, or a gift card. And never deposit a check and send money back to someone.
If someone tried to rip you off, report it to the FTC at ReportFraud.ftc.gov.
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Consumer Alert
Keep people’s sensitive DNA information private
By
Jim Kreidler
Consumer Education Specialist, FTC
June 16, 2023
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You’ve probably heard about genetic testing services, where a company examines your DNA, often from a saliva sample and sends you a report about your family background or your likelihood for developing certain health conditions. It might sound great, but can you trust a company when it promises to keep your sensitive DNA data private?
Vitagene, a San Francisco-based DNA testing company, promised consumers that it exceeded industry-standard security practices for maintaining the privacy of people’s sensitive health and genetic information. But the FTC says the company didn’t keep that promise. In fact, the FTC says Vitagene used a well-known cloud service provider to store people’s confidential information but didn’t use built-in cloud security measures. That made it possible for anyone with internet access to see the detailed health reports of nearly 2,400 consumers and raw genetic data of at least 227 others. To settle the case, the company will implement a comprehensive security program verified by a third party approved by the FTC.
If you’re considering using a DNA testing service, here are some things to consider.
- Know that your DNA data is sensitive because it’s about who you are. In fact, it’s so sensitive there’s a law to protect you from discrimination based on genetic information when you’re trying to get work or health insurance. But that law doesn’t apply if you’re trying to get disability or long-term care insurance.
- Do some research. Read and understand the company’s “terms of use” before you buy. Who will have access to your data? How will the company protect your privacy and keep your genetic information safe?
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