Shop To Earn
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Suppose I wrote "Shop to Earn" is biz op fraud.
What would you do when their attorney writes you demanding that you retract this opinion?
Generally, I respond to the demand letter asking the attorney to comply with the law regarding libel and slander - they have to point out the exact words in my post which they disagree with and explain why they were libelous.
But, Tracy Coenen, writing at her blog the Fraud Files has a different approach.
She has asked for support for a blogger and herself who have written about Shop to Earn's business model.
Tracy summarizes the problem with Shop to Earn in the following way:
"I am going to look into this company more and write up some of my thoughts. I will say that this has some common red flags of fraud: It seems to have an overcomplicated pay plan. It relies on an endless chain of recruiting of new members. It seems to only offer a substantial benefit to early adopters."
For her efforts, Tracy received a letter from a Mr. G. Nehra
"I represent ShopToEarn and advise them on direct selling legal matters.
You are on notice to CEASE & DESIST your disparaging and potential libelous references to ShopToEarn and the unapproved use of the ShopToEarn logo on your website.
The ShopToEarn program is legally and economically sound, and the company will take all steps necessary to protect its' rights.
Gerald Nehra Attroney for ShopToEarn"
Uh, ignoring the "Attroney", this email makes no sense.
Well, at least in Canada. As I have said, to serve a notice of libel and slander, one has to point out the offending words and usually the notice is served with a demand for a retraction.
How on earth is Tracy or anyone to know what words Shop to Earn is complaining about?
How could anyone draft an apology, even assuming that they were wrong, given this notice?
I haven't even looked at this biz op, but you can bet that Nehra has put in on my radar now, with this poorly drafted notice.
What are these boys really up to, I wonder? How is this business model any different than all of the failed "internet mall" scams?
Comments
Monica, my point is very simple - Shop to Earn is either a franchise or business opportunity seller under state or federal laws. As such, it has to provide a disclosure document to the purchaser prior to the sale, which in part would detail the basis of its earnings claims.
I have not seen such a disclosure document, nor have many of the supporters of this scheme indicated they received such a document.
As such, Shop to Earn may be in violation of the numerous business opportunity fraud laws.
Important information to know.
Posted by: michael webster
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October 2, 2008 10:20 AM
I am not sure what you are referring to overcomplicated pay plan, have you even become a broker with SHOP TO EARN, have you educated yourself on how this actually works? Please, before you go on to discourage potential independent business owners, do the research. Perhaps your intelligence level limits you to understand what is actually a great "payment plan". I have already met normal people who joined SHOP TO EARN and whom with ease, set you straight and perhaps even educate you. Better said, when they are done educating you, you will buy in without thinking twice! All of the brokers that I have met through SHOP TO EARN are doing phenomenal as well as those who they referred to the business. Yes I agree, you should stop your negative unsupported comments and join! You may learn a thing or two! Oh.....and then you will blog your apology on how you were mistaken.
Posted by: Monica | October 2, 2008 10:16 AM