FTC Issues $7.2 Million in Refunds for Business Coaching Services

Claim Form Deadline: Ongoing

Estimated Payout: Varies

The Federal Trade Commission (FTC) is issuing additional refunds to individuals affected by a telemarketing scheme that promoted business coaching services. Operating under various names such as Professional Learning Institute, Pinnacle Learning Institute, Advantage Education, and Discover Education, these companies falsely promised customers that large upfront payments would lead to successful online businesses.

Following settlements with the FTC, the defendants are now barred from selling business coaching services and work-from-home opportunities. The FTC has previously issued refund checks in January 2018, December 2018, October 2021, and March 2023, totaling over $7.2 million. With remaining funds, the FTC is now allocating more than $116,000 to 3,022 individuals who had previously cashed a refund check related to this case.

How to Identify Scam Business Coaching Services

The internet is filled with deceptive schemes that disguise themselves as legitimate business opportunities, coaching programs, and investment options.

Identifying these scams can be challenging, but there are key indicators to look for. If an offer guarantees high income, promises unrealistic returns, or claims to have a foolproof system, it’s likely a scam. Even seemingly low-cost or free opportunities can quickly become financial traps, leading to disappointment and debt. For example:

• Online Business Coaching: These schemes often promote easy wealth with minimal experience required, claiming that their “experts” possess a proven formula for success. Many victims discover too late that their investments result in losses rather than profits.
• Real Estate Seminars and Investment Coaching: Scammers lure individuals with promises of life-changing wealth through real estate or securities trading. High-pressure tactics during seminars often lead to regrettable investments and dashed expectations.
• Pyramid Schemes: These schemes focus on recruitment, enticing people with dreams of quitting their jobs for financial freedom. However, the primary goal is to recruit new members rather than sell legitimate products, often resulting in financial ruin.

To protect yourself from scams:

• Take your time: Avoid high-pressure tactics and consult trusted individuals before making commitments.
• Conduct thorough research: Look for reviews, complaints, and credentials of those involved.
• Be skeptical of success stories: Glowing testimonials may be exaggerated or unrepresentative.
• Verify coaching credentials: Check certifications and seek feedback from past clients.
• Beware of upsells: Avoid additional payments that are presented as necessary for success.

Before engaging with any opportunity, ask critical questions about the business model, costs, and profit timelines. Legitimate ventures should provide clear answers without resorting to aggressive sales tactics.

Scammers thrive on impulsive decisions and ignorance. Stay informed, cautious, and skeptical to avoid falling prey to fraudulent schemes. If you encounter scammers, consider reporting them to the Federal Trade Commission.