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Flogging rages on despite FTC crackdowns

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Posted 18th September 2009 at 08:57 AM by psresearch

Flogging and deceptive negative option offers continue to rage on despite the recent large FTC Crackdown on business opportunity scams.

The FTC did an amazing job, but the level of business opportunity scams seems to have just spun out of control. While many of the mainstream affiliate networks are no longer taking hidden negative option offers, private networks are still allowing them to be promoted and even seem to encourage flogging using sites like KevinsMoneyTree.org and the SanDiego-Tribune-News.com.

What's interesting about the new flogs is how much traction some of them are gaining even AFTER the FTC crackdown and AFTER Google started banning many of the advertisers using flogs or promoting products using the Google name without Google's permission.

Operation Short Change targeted one of the biggest Google Kit scams - Google Money Tree as well as well-known infomercial personalities such as Jeff Paul and John Beck (Mentoring of America).

From the FTC News Release:

"“Rising unemployment, shrinking credit, record-setting foreclosures, and disappearing retirement accounts are causing consumers tremendous anxiety about making ends meet,” Vladeck said. “But to con artists, today’s challenging economy presents just another opportunity to play on consumers’ worry and bilk them out of money.”

“Thousands of people have been swindled out of millions of dollars by scammers who are exploiting the economic downturn,” Vladeck added. “Their scams may promise job placement, access to free government grant money, or the chance to work at home. In fact, the scams have one thing in common--they raise people’s hopes and then drive them deeper into a hole.”"
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