Hey, what a crazy week…
I felt like this was coming because every time I landed on MOBES sales pages, it’s VERY hypy and they make income claims like crazy.
Now they do have some disclaimers, but it looks like the FTC doesn’t give a shit about that…
Let’s dig in on this Mobe FTC Shut Down…
Why Did MOBE Get Hit By The FTC?
After reading the offical FTC document (1), it looks like they are going after the fact they made crazy income claims.
As a start,
The defendants claim to have a “simple 21-Step” system consumers can implement to make substantial income “without creating your own products” and “without dealing with customers.” Pitching a “master plan to massive paydays with ease,” they promise that “average people with no prior experience online are depositing $1,250, $3,300, and even $5,500 commissions ” into their bank accounts “on auto-pilot.”
Members start at the $49 level and go through the 21 steps and while they go through this they get upsold memberships that can cost as much as $29,997.
Now nothing wrong with selling high ticket products, but they encourage others to do the same.
Look at the the FTC had to say about the events etc. below:
But regardless of how the defendants package the system online or at live events, the FTC alleges that the primary thing MOBE sells is more MOBE memberships. As a result, the FTC says that very few people – if anybody – achieved the advertised results and that many consumers found themselves in an even deeper financial hole. That should come as no surprise to the defendants, who themselves admitted in a buried fine-print hyperlink that the “average Consultant, which includes both active and inactive members, generates less than $250 per year.”
Another issue was the fact they offered a “100% risk free” promise, but they failed to honor things which spiked up complaints…
So who is on the hook for all of this?
This is off the FTC (2) site:
The defendants are Matthew Lloyd McPhee, also known as Matt Lloyd, an Australian living in Kuala Lumpur, Malaysia; Russell W. Whitney, Jr.; Susan Zanghi; MOBE Ltd., also doing business as MOBE, My Online Business Education, and My Own Business Empire; MOBEProcessing.com Inc.; Transaction Management USA Inc.; MOBETraining.com Inc.; 9336-0311 Quebec Inc., also d/b/a Business Education Training; MOBE Pro Limited; MOBE Inc.; MOBE Online Ltd.; and Matt Lloyd Publishing.com Pty Ltd., also d/b/a Matt Lloyd Publishing and Home Business Builders.
It looks like 2018 is the year of a HUGE crack down on companies like this.
Business Opportunities need to start changing their models completely and lead with the products and services first.
There will be a lot of changes of network marketing companies, or digital mlm companies in the future to being compliant.
I believe it will send the industry in the right direction.
Always lead with value! ALWAYS!
Remember with Zig Ziglar said, “Help enough people to get what they want, you will get what you want”.
Always serve first…
Anyway, that’s all I got for this Mobe FTC Shut down report, and will post you on it when I get more information on this MOBE FTC investigation…
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