Another post on the ongoing problems of scams and illegal activity to making money on the internet.

A little on gifting ...

Gifting Club:  This term, as far as I've ever seen it used, is just another term for a pyramid scheme.  The money you pay to join a “Gifting Club” is called a “gift” [donation, contribution], and the claim is often made that any money you receive from such a scheme is not taxable, because the IRS does not tax gifts up to $10,000.  This is a dangerous falsehood, because the IRS has always considered a gift [donation, contribution], by definition, to be something given with no expectation of receiving anything in return.  While the majority of gifting club participants really do get nothing in return, their “gifts [donation, contribution]” are certainly not given without the expectation of considerable return, so these payments cannot be considered gifts for income tax purposes.  In addition to the legal problems you could face just from participating in a pyramid scheme, failing to report as income any returns you might get from such a scheme could subject you to tax evasion charges as well.


Don't think that because you didn't read the terms of service or that you took someone's word for it that you will be excused from prosecution.

FBI and FTC are still collecting old members from 12DailyPro,as an example.

Look at what happened with the Enron incident.

Here are 2 businesses; one on line and one off line. You want to be in business and want to make money be sure what you get into won't put you in jail and paying back all you made plus fines.

Friendly advise and reminder.

Kenneth R Sword Jr

Hello Kenneth

You have just mentioned a critical factor in participation in any on or offline business.

Don't think that because you didn't read the terms of service or that you took someone's word for it that you will be excused from prosecution.

Too many people join internet businesses without even reading the TOS, the FAQ and any other small print.  They also think they are protected by having entered the business in good faith.

However on or offline - the same rule applies CAVEAT EMPTOR (Buy beware) because ignorance of the law is not a  defence.

When you tick that box - you are deemed to have read and understood what you have signed and the laws applying to that business.  Yes that means YOU not the  other guy

Saludos
Jenny

Hi Kenneth, Yes, I've seen more than my share of these "gifting" programs. A common twist is to "sell" you a list, report, etc. This is supposed to legitimatize it--since you are now purchasing a product and not just contributing to a pyramid scheme. I don't know if they have found a legal loophole here or not--but regardless, even with the "product" these "plans" are very unethical, and no respectable business person would even give them a first look. John

Hi John,

You are so right.

In the past several companies were busted for this. There basic setup was they have a product, but concentrate ONLY on the recruiting aspect. Pay in and the monies were distributed to the members above and admin got a cut of each. Some have seen them as matrix programs, 1ups, 2ups and so on.

It's all basically the same thing as the 'chain letter' scam but you pay only once and the program now divides the payments to admin and then members.  There is no product bought.

People only care if they get paid and don't give a damn to who they hurt in the process and I am tired of seeing so much greed at others expense. They call theirselves marketers. Really they are vultures.

Great marketers are hard to come by but scammers are everywhere. If people would just read the Terms of Service BEFORE they join anything they can see what is real and what isn't; especially those sites that don't have TOS and Privacy Policy available before joining.

Thanks for your post and success to you.

Kenneth

Ken, Thanks for the reminder to read the terms of service. They are so long and boring that I often skim through them. DonnaZ