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Utah seems to be the center for online business schemes

Posted by Clyde Hutchins | Oct 31, 2018 | 0 Comments

During my time with the Attorney General's office I noticed that most of the online business schemes originated out of Utah. I do not know why. I surmise that someone was successful with such a scheme many years ago and over time, employees left and started their own schemes.

Anyhow, the FTC has cracked down on another online business scheme. According to the FTC complaint, the scheme took $8.4 million from consumers interested in starting an online business. The perpetrators marketed business coaching services to consumers. The "services" cost thousands of dollars. As is common with this type of scheme, the perpetrators over promised results and persuaded consumers to charge thousands of dollars on their credit cards to pay for the so called services.

Consumers often tell me that the coaching services are lackluster at best. While the consumers expect that they will be taught to make thousands online with eBay and other services, the reality is that they only receive basic, mediocre advice. The consumers rarely make enough money to quit their day job. Many consumers are stuck with large credit card debts that they cannot pay off.

I agree with the FTC's recent action as I have been troubled by the fact that so many consumers lack the knowledge to protect themselves from online business schemes. Those who are not familiar with online commerce seem to be the ones that are most likely to fall for the online business scheme.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Mr. Hutchins started his career as a lawyer in Cheyenne, Wyoming. First gaining experience as a law clerk for the district court judges, Mr. Hutchins entered private practice with a Cheyenne firm focused on civil litigation, business law and some general practice law. Later, Mr. Hutchins went to Alaska, where he was the chief litigator for a firm that engaged in bond law, corporate law, securities law, and the broad reach of municipal law. Mr. Hutchins returned to Cheyenne to represent the State of Wyoming in the national tobacco arbitration. While in that position, he developed the consumer protection unit for the Wyoming Attorney General's Office. He led over 120 investigations and enforcement actions in Wyoming and worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado. Mr. Hutchins relocated to Colorado in 2016 and founded Harmony Law. Mr. Hutchins has established Harmony Law in three principal areas of law. First, it is a general practice firm in the areas of business law, estate planning and family law. Secondly, it is a civil litigation firm, practicing law in state and federal courts throughout Wyoming and Colorado. Finally, it is one of the few firms in Wyoming or Colorado that focuses on consumer protection law.

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