FTC Announced Settlement of Case Against Business Coaching Program

The Federal Trade Commission (“FTC”) announced last month the settlement with individuals and companies involved in a deceptive telemarketing business coaching program scheme. This operation targeted consumers aspiring to start home-based Internet businesses, ultimately costing them millions of dollars. The defendants, comprising seven individuals and eight associated companies, have agreed to settle FTC charges. They are now prohibited from selling business coaching services and work-at-home opportunities. According to the FTC's complaints, the defendants misrepresented their business coaching services. Consumers who signed up often found themselves without a viable business, minimal earnings, and significant debt. The defendants allegedly employed deceptive sales tactics, falsely claiming clients would achieve substantial incomes. They also falsely marketed their programs as exclusive and tailored only for qualified participants, while collecting consumers' financial information under false pretenses.