Better Business Bureau

"Business Opportunity" Mailing

October 8, 1999

The Mountain States Better Business Bureau has been alerted to a scam originating in Texas that targets seniors.

The Mountain States Better Business Bureau issues an alert about a recent "Business Opportunity" mailing in our region.

Consumers in Fort Collins and Greeley have received mailings this week from Natural Choice-USA in Culver City, California, urging them to attend "manufacturer's demonstrations" in Denver October 15 through 17, 1999. Antares Corporation, doing business as Natural Choice-USA and ORION Products Corporation are California companies, which offer a vending machine business opportunity. According to the report obtained from the Fresno, California Better Business Bureau, "This company's business is the offer of a seller-assisted marketing plan which involves the sale and distribution of vending machines. The company has responded with proper consideration to its complaints. In some cases they made full or partial refunds. In other cases, they cited the terms of the written agreement as justification for not making monetary adjustments. Complaints against the company allege that it failed to honor promises of refunds if financing could not be obtained. Other complaints allege misrepresentation of placement services, profit claims or claims of territory exclusivity. The company has advised the Bureau that it has 4,000 distributors and accordingly, it does not believe the number of complaints on file is significant."

The BBB report further states that, "On July 22, 1996, the company reached a settlement with the Federal Trade Commission. The FTC charged that the company misrepresented potential earnings and profits, the success of its location assistance program, the number of distributorships in any given geographic market, that the testimonials of successful distributors represent typical experience, and that some of its distributor's comments were unsolicited and uncompensated. Without admitting any wrongdoing, the company agreed to pay $1,000,000 in consumer redress. In addition, for three years, the company agreed it would not make any of the representations contained in the FTC complaint. The company must also disclose the name, address and phone number of five current distributors in the county nearest the prospect." During the past 3 years the Fresno BBB has had no complaints filed against Antares Corporation.

The Mountain States BBB offers the following tips for individuals who are considering investing in a business opportunity:

Call your local Better Business Bureau at 970-484-1348 (1-800-564-0371) to check on business opportunities you are interested in and reliability reports on local and national companies. Or, visit the Mountain States Better Business Bureau Web Site www.rockymtn.bbb.org.