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May 1, 1996
(Government Services and Lands)


Work-at-home Scams "Make up to $1,000 a week working at home. Easy work. Act now."

With the increasing number of people seeking employment, work-at- home employment opportunities sound very enticing. Consumer Affairs Officer Nellie Osmond warns, however, that some of these employment offers might end up costing you money. "Out of work consumers may find these newspaper ads very attractive but many of the offers are not legitimate." According to Osmond, job hunters should be suspicious of any job offer that asks for money.

Typically, work-at-home scams involve envelope stuffing or making crafts that the employer will sell. Though details differ, all schemes of this type are really selling something, Osmond explains how some of these schemes work.

A carefully worded newspaper ad suggests that job hunters write to a post office box number or telephone for information on how to get rich quick. Those who respond usually receive a kit containing testimonials and photos of people posed with yachts and mansions which promoters say were earned through the program. The consumer is then asked to send more money for the instructional kit.

In the case of the envelope stuffing scam, the kit usually contains only an explanation of how to duplicate the procedure to exploit other innocent job hunters. Some of these are called pyramid schemes and consumers who naively become involved in such schemes could unknowingly be breaking the law.

The craft-making scheme generally offers employment making crafts, necklaces or some other decorative item. Consumers are told they must pay for materials up front, but the firm will buy the completed items for resale. Kits and instructions are usually priced from $5 to $30 but a non-refundable registration fee of $40 to $50 may also be requested. The materials received may be quite adequate to make attractive crafts, but instructions may be very detailed and difficult to follow. Problems also arise when the consumer tries to sell finished articles back to the company, and the promoters refuse to accept them or to pay the amount promised.

The reasons given may vary with the conditions listed in the fine print of the promotional kit. A standard line is that the completed articles are not of "acceptable quality".

Osmond states: "Consumers should be very cautious about responding to advertisements that make unreasonable offers. An offer of a job working at home, which does not require any skill, and very little effort, but which promises significant returns should be treated with skepticism. Remember, as always, if an offer sounds too good to be true, it probably is."

Contact: Consumer Affairs Office, Trade Practices Division, Corner Brook, (709) 637-2445.

1996 05 01 10:50 a.m.

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