Is this company operating a legal business?

[Eun]

What is the name of your state? California

I recently looked for a P/T job online and came across an ad for a Data Entry Specialist. The description of the job was to process applications online and the pay would be $20 per application that I process. I would be paid through my PayPal account and each application would take approximately 15-20 minutes.

In order to start this job, I had to pay a non-refundable $29.95 for the training material which would be sent via email. The cost for training was paid directly into her PayPal account as well.

Couple of days later, I did receive the 3 page word document training material. The job was to place an ad on the internet, similar to the one I responded to, on websites such as Yahoo, Google, etc. where you can place an ad for free. When people respond to your ad (via your email), you reply to them immediately and tell them of their potential earnings. You make your money when they pay you for the training material (you can charge whatever you'd like.) The product you are selling is the training material, and the application you are processing is responding to their email and sending the training material once you receive the money through PayPal.

They even went as far as stating the following on the training material:

ALSO NOTE: This concept is 100% legal, refer to US Postal and Lottery Laws, Title 18, Section 1302 and 1341, or Title 18, Section 3005 in the US code, also in the code of Federal Regulations, Volume 16, Sections 255 and 436, which state a product or service must be exchanged for money received.

(I checked all the codes stated above and none of them pertain to this type of business.)

Is this legal?

 

[I AM ALWAYS LIABLE]

What is the name of your state? California

I recently looked for a P/T job online and came across an ad for a Data Entry Specialist. The description of the job was to process applications online and the pay would be $20 per application that I process. I would be paid through my PayPal account and each application would take approximately 15-20 minutes.

In order to start this job, I had to pay a non-refundable $29.95 for the training material which would be sent via email. The cost for training was paid directly into her PayPal account as well.

Couple of days later, I did receive the 3 page word document training material. The job was to place an ad on the internet, similar to the one I responded to, on websites such as Yahoo, Google, etc. where you can place an ad for free. When people respond to your ad (via your email), you reply to them immediately and tell them of their potential earnings. You make your money when they pay you for the training material (you can charge whatever you'd like.) The product you are selling is the training material, and the application you are processing is responding to their email and sending the training material once you receive the money through PayPal.

They even went as far as stating the following on the training material:

ALSO NOTE: This concept is 100% legal, refer to US Postal and Lottery Laws, Title 18, Section 1302 and 1341, or Title 18, Section 3005 in the US code, also in the code of Federal Regulations, Volume 16, Sections 255 and 436, which state a product or service must be exchanged for money received.

(I checked all the codes stated above and none of them pertain to this type of business.)

Is this legal?

My response:

You have described what is commonly known as a "Pyramid Scheme".

IAAL

 

[Eun]

Is their scheme legal?

Is this scheme legal though? If not, do I have grounds for asking my money back (maybe with a threat to report them)?

 

[Aurorien]

Pyramid schemes are illegal in California. I would contact them for your money back. If they refuse, file a Buyer's Complaint with Paypal to start.

A couple after-thoughts:
1) Avoid jobs that require you to pay up-front for whatever reasons.
2) If something seems to good to be true, it probably is.

 

[hrassistant]

Fellow consumer

State: Florida

If it is illegal in California are there other states where it's legal? If this person is doing this through the internet wouldn't a federal law apply, not local. Where can these laws be found. I just recently encountered this same type of job posted online and would like to research the laws surrounded by this. Can this person be turned into the authorities for prosecution?