FTC Warns About Mass Surveillance

Case Breakdown: Blueprint To Wealth

This case from last year caught our attention because it was finally settled this week.

It’s a good one for us to look at because it features some common violations that the FTC targets, especially with companies that are in the business or investment opportunity spaces.

The defendants sold a membership program that cost between $3,000 and $21,000. That membership program gave members 2 things…

1. Members were able to sell digital products created by the company.
2. Members could generate income by driving new sales for the program.

This program was sold over the phone, which exposed them to Telemarketing Sales Rule violations.

Remember, if you sell over the phone, you are at a HIGHER level of risk!

Here are some of the key takeaways from the FTC’s complaint letter.

Remember: This is the FTC’s point of view.

#1 – Customer Complaints

The FTC claims that “consumers have filed more than 230 complaints with the FTC regarding robocalls, including ringless voicemails, associated with Defendants’ Blueprint to Wealth scheme.”

Customer complaints – especially if they are being sent directly to the FTC – are a common way a company gets on the FTC’s radar.

#2 – Not Getting Proper Authorization

The defendants were accused of reaching out to prospects with pre-recorded sales message WITHOUT getting their consent. This is a violation of the Telemarketing Sales Rule.

#3 – Earnings Claims

The defendants used earnings claims at multiple points in their sales funnel.

You can see income claims on the lead generation page above. There were also earnings claims made during pre-recorded cold reach outs and during the sales calls.

Remember, any time you make an earnings claim you MUST be able to prove that it is a TYPICAL result for customers in your program and not just what your most successful customers make.

Contrary to their claims, these earnings were not a typical result for customers in the program.

#4 – Testimonials Creating A Misleading Net Impression

The defendants used testimonials of customers discussing how much money they made with the program. They also included pictures of checks they supposedly sent to members.

However, these testimonials were not substantiated and did not represent typical results of customers.

#5 – Misrepresentations About The Program

A major selling point was that the program was “done for you” and “low risk.”

The net impression customers took away was that they only had to invest a small amount of money into advertising, and they would generate passive income.

According to the FTC, this was NOT the experience of most customers.

#6 – Targeting Vulnerable Groups

The complaint notes that many of the customers of this program were retirees.

The FTC is known for putting extra scrutiny on businesses that market to vulnerable groups such as the elderly, veterans and disabled.

#7 – Harsh Penalties

The total monetary judgement was more than $7.5 million.

The 3 defendants paid far less than that. The last person that settled only had to pay $100,000.

However, each were BANNED from selling or marketing money-making or investment opportunities. 2 of them were also banned from robocalls and/or telesales.

Here is the link to the FTC’s press release.

Here is the link to the complaint.