How To Detect Frauds In The Vending Business

The federal trade commission (FTC) the government agency that monitors advertising for deception says that some ads for business opportunities feature empty promises and false claims that potential entrepreneurs could never realize. The ads are so alluring that it can restrict the reasoning power of the potential business owners. The consumers are made to believe that it is a genuine company and aims at orientation of consumers.

Promoters of fraudulent vending business run ads where their targets are likely to see them, in daily and weekly newspapers, in magazines and on the internet. Frauds have most often been associated with the vending machines.

Here are few most common claims that have made it into the legitimate papers, magazines and websites recently:

“Earn $ 2000 a month”. If an ad claims buyers can make a certain amount of money, the law says the promoter must give the number and percentage of previous purchasers who earned the income. If an earnings claim is there, but the additional information isn’t, ask for more information: the business opportunity seller may be violating the law.

“No risk! Guaranteed!” Ads that promise a big payout with little or no risk are usually a telltale sign of a fraud. Legitimate business ventures involve risks — usually in proportion to the promised return. “Huge Income” “100% return on your investment!”. All such claims are mostly fraud.

“Quick and Easy!” Only a few are profitable from the start. If ads promise vending locations, they may not be current or high-traffic; the merchandise also may be out-of-date or of poor quality. “Start Earning Today” “Prime locations available now”.

In order to prevent your company from being called a fraud. You should make efforts to review any false claims being made with your company name. The readers may believe that an offer is genuine because it’s in your publication or on your website. When the claim turns out to be false they may well blame you for any losses. Reviewing will protect the reputation of your company and the consumers in your community.

Reputation once lost is very hard to regain and so all efforts should be made to maintain your goodwill in the market. A research team should be built to keep a check on what all is going on in the market and which can affect your business a great deal.