Dallas, TX, August 19, 2009 – The Better Business Bureau serving Dallas and Northeast Texas is warning consumers about an Austin company making big promises and expanding in the Dallas area. The company, iJango, is recruiting for an opportunity involving a "customizable personal Web portal" and has scheduled a business presentation next week in Plano, TX. An investigation by the BBB in Austin indicates the company may be operating as an illegal pyramid scheme.
Over the past three weeks, hundred of consumers nationwide have inquired to the BBB in Austin about iJango, 9433 Bee Cave Rd., #1-250, Austin. Due to the increase in inquiries, on August 3, 2009, the BBB in Austin met with iJango’s CEO, Rayner Smith, to clarify the nature of their business practices. Mr. Smith and his staff indicated they offer a business opportunity. However, he indicated that potential clients are paid for the recruitment of registered customers and the recruitment of others to do the same, a clear sign of a pyramid scheme. This information earned the company a BBB rating of F. Click here to view the company’s current BBB Reliability Report™.
The BBB in Dallas has received an email invitation to an iJango Business Presentation in Plano on Tuesday, August 25, 2009. A flyer attached to the email describes "an opportunity to achieve massive income from regular daily activities on the Internet," and refers to iJango as "The Center of the Online Universe."
The BBB in Austin reports that iJango claims consumers can pay an upfront fee of $50 to join the program, but recommends purchasing a package for $149.95 and a monthly maintenance fee of $19.95. The company further claims that consumers participating in the program will earn income in two ways:
- Recruiting other individuals to purchase the opportunity and recruiting registered customers.
- Receiving commission on iJango’s commissions that are generated by Web site traffic and purchases through iJango Web site “portals.”
The Texas Attorney General's office states that the Texas Deceptive Trade Practices Act (DTPA) prohibits "pyramid promotional schemes. The DTPA defines a pyramid as a plan or operation by which a person gives consideration for the opportunity to receive compensation that is derived primarily from a person's introduction of other persons to participate in the plan or operation, rather than from the sale of a product. This means that, for an MLM plan to be legal, commissions must come from the retail sale of a product and not from the recruitment of people to the sales team."
Complaints about iJango received by the BBB in Austin allege concerns with the delayed availability or use of the iJango portal. The BBB is awaiting a response from iJango to these complaints.
The BBB is also concerned about iJango’s claims that they have Web traffic agreements with companies such as Yahoo!, iTunes, Rhapsody and Google. The BBB in Austin has been unable to confirm these affiliations. Rhapsody has stated they do not have a contract with iJango, and Google released the following statement: “We are not affiliated with that company. Our trademark team is looking into this issue, thanks again for bringing it to our attention.”
The BBB recommends consumers exercise extreme caution when evaluating any business opportunity and consider these tips to make an informed decision:
- Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid scheme.
- Beware of plans that ask to purchase expensive products and marketing materials upfront. These plans may be pyramid schemes in disguise.
- Beware of plans that claim to sell miracle products or promise enormous earnings.
- Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation without first taking time to think over the decision. Talk it over with a family member, friend, accountant or lawyer.
- Remember that no matter how good a product and how solid a multi-level marketing plan may be, investment in time as well as dollars may be needed for your investment to pay off. If it sounds too good to be true, it probably is.
For more information on pyramid schemes and to check the reliability of any company, visit www.bbb.org.