In 2020 the FTC sued Digital Income System as one of fifty lawsuits it filed as a result of a joint operation with state and federal law enforcement agencies called Operation Income Illusion.  Digital Income Solutions sold memberships in its programs by misrepresenting the nature of their business opportunity programs and the money that their victims were likely to earn.

Now after settling the case, the FTC is sending out more than a thousand checks to the victims of the scam.

TIPS

The sale of business opportunities is regulated by the FTC’s Business Opportunity Rule which requires the sellers of business opportunities to provide a one-page disclosure document outlining important facts about the offering including informing you about any legal actions in which the sellers have been involved. The disclosure also has to provide you with details as to any refund policy and provide a list of references.

Additionally, as is always the case with these types of scams, if they make claims about how much money you can earn through their scheme, they must provide you with an Earnings Claim Statement that indicates in detail the specifics of those claims and the opportunity to see written proof of the claims.

Before considering any kind of business opportunity, you should have a lawyer review these required disclosures and if the person offering you the business opportunity does not provide these documents, you should consider that a red flag that this is a scam. You also should investigate the people behind the offering as well as the particular type of business opportunity.

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