The Federal Trade Commission (FTC) announced on Tuesday, January 14 that it had shut down an income scam phone fraud scheme that targeted Latinos in the U.S. The statement from FTC attorney Laura Solis notes that the commission reached a settlement with Oro Marketing that bans both the company and its founder from working in the telemarketing industry.
Of note, a number of experts have also claimed that the the nutritional supplement company Herbalife targets Latinos in a multilevel marketing and income scam.
Details on the Oro marketing income scam
Earlier this month the FTC noted that a federal court had ordered Oro Marketing to temporarily shut down operations because of illegal business practices. The firm was allegedly undertaking phone fraud targeting Spanish-speaking Latinos. The scam was to promise the targets shipments of high-end goods that they supposedly re-sell for big profits. Oro charged customers between $400 and $490 for a shipment, but then delivered low-quality, off-brand products that had very little value. The FTC statement said that no one made any money “…except the defendants, who misled people to steal their money.”
Solis also points out Oro Marketing lawsuit was the impetus behind for the FTC’s new fotonovela, a Spanish-language graphic novel tited Estafa de Ingresos, or income scams. The heroine, Fátima is approached by a Spanish-speaking scam artist who promises top quality products cheap, and talks about how easy it is to make extra money. Then, when the products arrive in the mail, she can’t inspect them first because cash or money order payment is required right away. Readers will earn many of the signs of an income scam.
Estafa de Ingresos is the newest of the FTC’s fotonovela series, a PR effort to help Spanish speakers avoid frauds aimed at them. You can also lean how to file a consumer complaint with the FTC. Complaints give the FTC the information they need to move forward on investigations of possible consumer fraud.
To get a free copy of Estafa de Ingresos, visit ftc.gov/bulkorder. Please note the document is only available in Spanish.