BBB “checking” TelexFree’s advertising in the US
As part of my daily blogging routine for BehindMLM I digest, research and analyse a ton of information within the MLM sphere on a daily basis.
Earlier this morning I was conducting my usual MLM news and research rounds when I stumbled across the following curious pop-up over at the BBB website:
Dubbed a “routine literature request”, for reasons not clarified it appears the BBB are requesting consumers to send in examples of TelexFree’s marketing.
BBB routinely randomly checks on businesses literature/advertising to consumers.
Please email or send via postal mail a copy of the literature/advertising you received from this business.
Google cache reveals the information request pop-up was triggered as early as August 24th, however the exact date the BBB began their research is unknown.
Despite the claim that the BBB’s information request is “routinely random”, I’m not entirely convinced.
The BBB listing for TelexFree, which provides an address in the US state of Massachusetts, states that the ‘BBB Business Review on TelexFree is being updated by BBB’ and that they are ‘unable to provide (readers) with any information at this time’.
Coupled with the mounting legal problems TelexFree is facing in Brazil, I don’t think the BBB requesting specific marketing and advertising material from TelexFree and its affiliates is co-incidental.
Curious as to what the current TelexFree marketing landscape looked like, I set Google to show me the last 24 hours of results for “telexfree”. I only had to look at the first page of results to see a YouTube video informing me that I would “get paid weekly guaranteed” with TelexFree.
I’ve also highlighted a rather absurd result claiming that the hacktivist group Anonymous have thrown their support behind TelexFree by way of a YouTube video.
If anyone is familiar with the group, the notion that they would waste their time and efforts supporting Ponzi schemes such as TelexFree is laughable.
Oh and the actual video? Already removed from YouTube ‘as a violation of YouTube’s policy against spam, scams, and commercially deceptive content‘.
Getting back to the BBB, it’s worth noting that on their website the organisation states:
BBBs are private, self-regulatory agencies that seek the voluntary cooperation of business.
When illegal practices are uncovered and the business refuses to cooperate with the BBB, the matter is referred to the appropriate law enforcement agency.
Also, BBBs have close working relationships with governmental agencies such as the Federal Trade Commission, with consumer protection agencies, and the State Attorneys General.
Whether or not TelexFree is being investigated in the US of course remains to be seen. However I think it’d be pretty naive to suggest that the company wasn’t at the very least on the radar of US regulators.
Especially when you’ve had Brazilian TelexFree kingpins running around telling their downlines to re-register through US TelexFree accounts to bypass the Brazilian injunction.
As always, stay tuned…
Well, this is encouraging news. Perhaps someone from BBB should hop in their car and take a ride over to Telexfree’s corporate headquarters since it’s convenietly located only a short distance from their offices.
Hmmm mapquest says only a bit over 5 miles. Perhaps over lunch Carlos, Jim and Steve could fill the BBB in on the benefits of Telexfree and how it’s changed so many peoples lives. They’re such nice guys I’m sure they’d even pick up the tab.
I’m very skeptical that the BBB is only “randomly” investigating Telexfree. The BBB is a very powerful entity and I doubt would waste time doing anything randomly.
Massachusetts, USA has a good track record in going after these types of schemes. Look out Telexfree…they’re coming after you now. I’ve registered my complaint with the BBB of MA. I hope all of your readers will join me in writing the BBB and help shut this down as quickly as possible. Every voice will help.
The internet helps this fungus called MLM to grow quickly but it also creates a wealth of information and evidence to take these bums down. Oz, I also suggested, if they haven’t already, to look to your blog for the wealth of information and research already done by you and all your readers.
Lets hope the BBB goes all the way this time and puts these scum bags away. Top affiliates too. Hey Faith would you like your new braclettes made out of steel or aluminum?
It’s better with right type of information to the right type of authority, rather than MANY individual complaints. MANY complaints may “drown” people in work rather than leading to results.
BBB is not a regulatory authority, it’s simply a “middle man” between businesses and consumers in complaint cases (a type of supervisor, but without any formal authority), and between some government agencies and consumers. It’s also a rating bureau.
Most cases are local, so the local State AG should normally be “the correct authority” for most people.
Will handle major pyramid scheme cases, but very few. Will typically use 2 or 3 years for investigations, plus 5 years in court after a shutdown. CAN handle a shutdown relatively effectively, but will typically use very long time to build up a case.
Budget reduced by 5% in 2013.
Will handle major Ponzi schemes and other investment frauds, but very few.
Budget reduced by 5% in 2013.
I would typically have used SEC in this case (State AG isn’t the correct authority for me, I’m from Norway). I would have used e-mail rather than online complaint system, because I typically will send “specialized info” that don’t fit into an online complaint system.
SEC is the “correct authority” to handle investment frauds on Federal level, but mostly major cases.
A Joint Task Force agaist white collar crime. The other agencies will typically support the one having the case, e.g. as a solution to “jurisdiction issues”.
* Secret Service will investigate Crimes against the Economy
* FBI will investigate other types of crimes
* SEC will investigate investment frauds
* FTC will investigate trade related frauds
* U.S. Postal Service will investigate different crimes
* IRS will handle tax frauds
This solution is “internal” and “between agencies”, not a solution to the public.
Depends on the agency, and what TYPE of information you have (e.g. general or personal).
Personal complaints should typically fit within the online complaint system found on the agencies’ websites. It’s designed to be stored in a database, be searchable and handled in other ways. It’s typically designed for consumer complaints, rather than for specialized info.
One of the Herbalife articles will show where the online system works and fails, e.g. too detailed information will be capped at 3000 characters, before people have come to the main point in the complaint. BBB complaints were generally vague, and about “consumer issues” reported via telephone.
More specialized info will typically not fit within a complaint form. E-mail will probably be a better solution. E-mail can probably be combined with filling out the online complaint form.
Some of those agencies have Whistleblower programs. They are typically designed for people who have detailed inside information, rather than for the general audience. Programs like that makes most sense in tax frauds or other “financial crimes against the government”.
Reduced budget = limited resources = fewer cases will be investigated and prosecuted. You will need to adjust information to that reality, e.g. by identifying the type of information that have most “value”.
That’s great reporting OZ! Let’s hope this is the beginning of something.
I found that you can add files to some online complaint systems, which might help when you have a limitation for characters.
It would be nice to figure out why all of the sudden they changed their address to UK on the website, if US branch is still working….
Carlos Costa (director of YMPACTUS – Telexfree Brazil), has made a video saying the company doesn’t agree with Brazilians registering directly into Telexfree USA. He said that there is a contract between YMPACTUS and TElexfree USA which gives exclusive rights to Ympactus regarding Brazilian registrations.
For me, that video is a lie. I think Telexfree USA is pretending they are not accepting Brazilians, but they never blocked Brazilian IPs for registering, and you can pretty much enter any number in that TAX ID field (as long as it has the same amount of digits).
If they really wanted to stop that, they would’ve updated the system to prevent these frauds. I guess Carlos Costa’s public statement was only to keep YMPACTUS out of even more trouble with the Court.
I have only looked at the system itself without trying to use it, so I didn’t see the “Upload file”. But I will typically prefer “Anonymous tip” methods rather than having a complaint registered in a database for several years.
Other than the factual info they’re asking for in the online system, the type of info you should send will depend on whether it’s a new or existing case.
Government agencies in the U.S. have probably received SOME information now = assume it’s an existing case, you’re only adding information to it. With that idea, you can effectively limit some types of information and focus on other types. You don’t need to write that much, and they don’t need to read that much.
At this stage of the case, I would have added some information about the case in Brazil and its current status, plus information about the Defendants and which country they live in.
I would have linked to some of the training videos, or linked to where to find them. “Scott Miller Telexfreetrainer” has some training videos about the system.
I would also have linked to one or two marketing videos, to clearly identify it as an investment (within SEC’s jurisdiction). I would also have added my own SHORT logic for identifying it as a Ponzi scheme, or Ponzi/pyramid hybrid.
And that should be enough. The main idea I used here was to add something to existing information. The training videos will add a lot of factual information about how the system works, e.g. about fake customers and internal transactions.
Other important information:
Payment processor GPG Global Pay Gate in Canada
Newly registered company in the UK
NOTE:
This is how I THINK how to solve it. I would probably have made some changes to it.
I prefer to wait and see how the situation in Brazil will affect TelexFree in the US.
Somthing has tweeked the BBB into seeking information from the public. Agreeing with MNorway that government entities are short on man power these days is exactly what leads me to believe they wouldn’t open this can of worms if somthing wasn’t amis.
Since they have invited the public to send them information they understand the probability of having some work ahead of them. research(at)boston.bbb.org is an email address and so people can write as long as they like as well as attach any files or information they find appropriate.
I’m sure it won’t sit well with Mass authorities to find out that Sann Rodrigues aka Sanderley De Vasconcelos (our spanish speaking tour guide through the telexfree corp headquarters), was at one time running a Ponzie scheme called Fone club that was shut down by the Mass. authorities and is now claiming to be one of the first millionairs in USA Telexfree.
The BBB is a long respected entity and I assure has the ear of the Attorney General. This isn’t a problem of a builder fleecing some customers. These schemes are more frequent than in the past and on a grander scale. They are being taken down.
Recently it was reported that a gift giving operation, run by some women in Connecticut, USA was recently busted and two middle aged women that ran it are going to jail. This group is miniscule compared to Telexfree and the government took the time to stop them.
The authorities aren’t looking the other way anymore. Does anyone really think the United States government will be ok with all the tax money it’s not able to collect? Aaaaaaah motivation.
Although it has “bureau” in its name, the Better Business Bureau is not affiliated with any governmental agency. It is a non profit organization.
To display the BBB logo a business must pay a fee. Businesses that affiliate with the BBB and adhere to its standards do so through industry self-regulation. To avoid bias, the BBB’s policy is to refrain from recommending or endorsing any specific business, product or service.
Its possible that Telexfree USA has applied for BBB membership and this is why the BBB.org website displays a request for information from the public.
The BBB is not an enforcement agency in any manner or form.
@Dorothy
You can send them (BBB) this video, and ask them to start 4 minutes into it. Disabled link, the video has been posted before in another thread.
youtube.com/watch?v=gj_DFxAiYaY
From around 4 minutes into the video it describes different “Contracts” …
* 1 AdCentral $289 / income min. $20 per pweek
* 1 Family AdCentral $1,375 / income min. $100 per week
* 11 Family pack $15,125 / income min. $1,100 per week
… without recruiting or selling anything. 🙂
It’s from my list of potential videos to SEC.
“LESLIE LIVE” is even more disturbing (posted earlier).
youtube.com/watch?v=3HSq9x5juMU
The rest of my “videos to SEC” list were training videos from “Scott Miller Telexfreetrainer”. They have some informational value about the system itself.
youtube.com/user/TelexFreeTrainer/videos
“Purchase from yourself” should be of interest. The same with some of the other back office training videos.
Frontier and a couple of others have asked questions about it before, “Have anyone informed the U.S. government?”. For me, information like that will be too “specialised” (I will need to identify information differently).
@M_Norway Thank you for your wise suggestions.
I’m a ponzie pyramid scheme and I contact the BBB to ask for their endorsement knowing they will look into how I do business? Hellooooooo… I don’t think so.
Also, when I talk about the power of the BBB???? They are a voice in the ears of higher powers. They will gather information and turn Telexfree over to the proper legal entities that will take care of the issue.
How do I know? I’ve seen the power they wield first hand that’s how. Do not for an instant think they are not capable of being the begining of Telexfree’s end.
Thanks so much Mr_Norway for carefully tutoring us the best way to report these things.
I’ve been researching TELEXFREE for quite a while now, and have SEVERAL information which could have this “added value” to ongoing investigations, such as videos, email correspondence, facebook postings and messages, dialogs, groups, etc.
The only issue is: everything is in Portuguese. Would that have any value for SEC, BBB, or any other US institution?
I’m not tutoring, I’m only posting and analysing some IDEAS for how to do it and where to send it.
The MAIN idea is that I see government agencies as PEOPLE rather than “authorities”, so I’m trying to adjust it to that idea. “Don’t drown them in work” is clearly related to that idea.
Each and every part has clearly been related to that idea, from “Send the right type of information to the right type of authority, rather than MANY to BBB”. The idea is reflected in all other parts too, e.g. in the marketing videos and the back office training. They’re simply meant to help people identify something and find it themselves.
“See them as people” should normally help you to identify material. If it makes sense to people you know (non experts), it will probably make sense to them.
I will TYPICALLY use very plain and simple ideas, ideas that can be repeated over and over again in many different areas. The basic idea on this website is “share information, and provide a platform for doing it”. Plain and simple.
But that also means that “specialized ideas” like sending information to government agencies isn’t a major part on its own. It will be added only when needed, e.g. if anyone is interested in it.
If access to the register is in Portuguese language, gives the message of the Brazilian courts. If I register access using another language gives the following message “Please try one of our advisers.” Just check the site Telexfree.
Now I know that here in Brazil are joining the site, just do not know if it’s via proxy.
Se o acesso ao cadastro for na lingua portuguesa, dá a mensagem da justiça brasileira. Se eu acessar cadastro usando outra linguagem dá a seguinte mensagem “Please try one of our advisers”. Acabei de conferir no site da Telexfree.
Agora eu sei que aqui no Brasil estão se cadastrando no site, só não sei se é via proxy.
The BBB does not provide endorsements. I already told you that.
The BBB is updating Telexfree’s file (reviewing their business conduct). According to the BBB, Telexfree is not accredited. The BBB would not disclose tom me if Telexfree has applied for accreditation.
One of many of the elements that BBB tracks on a company (any company) is whether it is in compliance with the BBB’s advertising guidelines. Ta Da.
TelexFREE has had their BBB Review viewed 1842 time(s) over the last 30 days.
If you are interested you can go to the BBB website and Click to view where these inquiries originated.
Here in Brazil is yes posssivel register in another country, the site of Telexfree without using Proxy. Tested and opened for me the registration screen on the site.
Daqui do Brasil é posssivel sim se cadastrar em outro país, no site da Telexfree sem usar Proxy. Testei e abriu para mim a tela de cadastro no site.