Gas prices are high, and jobs are still scarce. So who wouldn’t want to make a little extra money on the internet? FOX6 Investigator Bryan Polcyn has a warning about an internet marketing company that promises to help you get a piece of the trillion dollar e-commerce industry.
Stores Online has been fined more than a million dollars for violating consumer protection laws from coast to coast. They’re back in Wisconsin promising to help small business owners market their products on the internet. Only they don’t seem to care if you actually have a business, a product, or computer skills. The only thing that is required is a checking account.
Jan and Rick Hoesterman are not exactly tech-savvy entrepreneurs. It didn’t strike them as unusual when Rick got an exclusive invitation to an internet marketing conference in West Bend. The mailer informed Rick that he, and a guest had reserved seats for a conference aimed at small business owners looking to increase sales on the internet.
Never mind that Rick is retired, and doesn’t even own a business. Rick said, “Seems to indicate that you’ve got this opportunity to sell something on the internet, but I wouldn’t know what to sell.”.
Jan doesn’t exactly have a business, but she is a consultant for Market America. It’s a work from home system she describes as “kind of like Amway”.
Jan and Rick decided to check out the seminar just to see if Jan could pick up some free tips. What they got was a two hour sales pitch for high priced computer software.
Last month, Stores Online held seminars all over southeast Wisconsin, and we caught one on hidden camera. The seminar was billed as a conference for business owners and entrepreneurs. Jan said, “It seemed like a lot of retired people there. People that you wouldn’t be expecting to start a business at this age in their life, but obviously they must have been pulled in thinking this was going to be their ticket to financial success.”.
Stores Online has been accused of deceiving consumers from California to Florida, and Connecticut to Washington State.
Over the past six years, ten states have ordered the company to pay more than $1.3 million in fines. They were also ordered to pay restitution to consumers who were duped by exaggerated claims that they could make money selling products on the internet.
That includes Wisconsin where the Office of Consumer Protection has boxes of complaints on file from a 2008 lawsuit resulted in a $50,000 settlement.
Attorney Jeff Korn is the Spokesman for Utah-based Stores Online. He said, “We really did a poor job…What happened was about five to six years ago Stores Online grew exponentially, and what happened, unfortunately, customer service and support did not keep up with the growth. And that rightfully made a number of people unhappy, and created a number of issues.”.
Korn tells FOX6 the company has cleaned up its act. During the free seminar, they now make it clear that they intent to sell you internet services and software. In the past, the price of the software wasn’t revealed until you paid to attend a full-day workshop.
Despite these changes complaints are still coming in to the Wisconsin Office of Consumer Protection.
Stores Online still appears to be targeting consumers who lack basic computer skills have little to no business experience, and have no product to sell. They create an illusion of selectivity by requiring the audience to fill out a form with questions like, “How motivated are you to get something started on the internet?”.
After collecting the forms, the pitchman calls out the names of the lucky winners who’ve “qualified”. Rick didn’t expect to hear his name, since he was honest that he indicated on the form “Not sure”. They picked him anyway. Korn says, “I don’t understand why he was picked that would have been a clerical error. That’s obviously someone who probably shouldn’t be a customer of ours.”
Rick declined the invitation, but dozens of other winners lined up to shell out $99 for the next round of training at Milwaukee’s Pfister Hotel. Korn says, “To be able to come to the workshop you have to at least meet minimal qualifications. Owning a computer, having a high-speed internet, and having a checking account.”. Apparently that’s all you need.
Margaret Schuster doesn’t own a business, or a product to sell. Stores Online told Margaret Schuster that she qualified for a $6,000 line of credit to buy their internet marketing tool kit. Schuster says, “When I said I didn’t have it, they just kept going. I must have said no about six times.”.
Jan and Rick walked away without spending a dime. Jan said, “It isn’t fair. It isn’t right for people to take advantage of people who don’t have a lot of money to put forth.”.
Stores Online Spokesman Jeff Korn says they give every customer access to their software for two weeks before they attend the full day workshop. He also says they offer a 15-day refund option for seniors age 65, and older. They offer a three day refund window for everyone else.
However, customers who filed complaints in the past say they tried to get refunds, but were stalled until it was too late.
Stores Online currently has an “F” rating from the Better Business Bureau (BBB). The BBB says the company broke a promise to stop doing seminars. Stores Online says that was a misunderstanding. They fully intend to keep doing the seminars, and expect to be back in Wisconsin in 2011.
Source:http://www.fox6now.com/news/investigators/witi-20110508-easy-money,0,6906798.story
