TMCnet News
Detroit Free Press Susan Tompor column [Detroit Free Press](Detroit Free Press (MI) Via Acquire Media NewsEdge) Oct. 02--The warnings about wacky ways to waste money can seem never ending. No one, really, can expect to lose weight by wearing caffeine-laced lingerie, according to the Federal Trade Commission. Really. The FTC called out claims by Norm Thompson Outfitters and Wacoal America that sold "shapewear" garments as a way to slim down and reduce cellulite. The women's undergarments were promoted as weight-loss solutions because they were infused with micro-encapsulated caffeine and other ingredients. No, that doesn't sound like some sexy thing that would show up on the runway for the Victoria's Secret holiday fashion show. And despite some claims, these garments are not going to turn you into a model, either. Wacoal America's iPants, including bike shorts, tights and leggings, should not be making claims that they can destroy fat cells, according to the FTC. Depending on the style, one could pay $44 to $85 for this stuff. For it to work, supposedly, it was recommended that one wear the iPant eight hours a day, seven days a week for 28 days, according to the FTC complaint. Norm Thompson Outfitters marketed garments made with Lytess brand fabrics that cost $49 to $79. The FTC also took issue with claims about reducing hip and thigh measurements "without any effort." The FTC said such claims were false and unsubstantiated. The order requires Norm Thompson Outfitters and Wacoal America to pay $230,000 and $1.3 million, respectively, that the FTC can use to provide refunds to consumers. Consumers who bought these products thinking that the shapewear would cause them to lose weight can file a complaint with the commission at www.ftc.gov. Now, here's another weird warning for your wallet: Keep your cash quarantined from "viral disease" investment scams. Yes, the latest stock scam is tied to trending outbreaks, such as Ebola and Middle East Respiratory Syndrome, according to warnings from the Financial Industry Regulatory Authority, the largest independent regulator for all securities firms doing business in the U.S. Should investors believe claims that some little-known company is suddenly ready to make lots of cash as a result of a purported cure or treatment for a high-profile viral disease? Well, only I suppose if you're wearing some shapewear that will make you skinny. The real risk is that you'd find yourself caught in some "pump and dump" scheme. Fraudsters pump up the stock price when they make aggressive and optimistic statements in an out-of-the-blue e-mail, news release or posting on social media. Once the share price and volume spike, FINRA warns, the con artists behind the scam dump their shares, selling at a profit and leaving everyday investors with worthless or near-worthless stock. The promoters can be company insiders or paid promoters who stand to gain once the price is pumped up in a buying frenzy. Often, fraudsters may connect their hot stock somehow to the latest news headlines -- viral diseases, medical marijuana, bitcoin, you name it. Another sure-fire shot at losing quick cash: Believing you're in on the ground floor with former basketball star Michael Jordan on the next smoking hot investment. The Securities and Exchange Commission filed charges against an outfit that claimed it had a start-up TV network called Vision Broadcast and Jordan planned to invest in it. The SEC said Jordan never told anyone he planned to invest in Vision Broadcast. Reportedly, about 100 investors believed two Florida men behind the scheme and invested at least $5.7 million. The SEC charges that money from investors ended up being used -- you guessed it -- to cover personal and travel expenses of the promoters, Vision Broadcast Network's then-CEO Erick Laszlo Mathe and consultant Ashif Jiwa. Bottom line, if an idea sounds really kind of wacky, well, if you fall for it, you could soon be wasting a whole lot of money. Contact Susan Tompor: 313-222-8876 or [email protected]. Follow her on Twitter @tompor. Other ways to lose money --Don't buy fake tickets. The Better Business Bureau serving eastern Michigan warns that Detroit Tigers fans need to be aware of potential fake tickets being sold as we move into baseball playoff season. "The Internet has become the arena of choice for sports fans looking to buy or sell tickets, but unfortunately, it also has become a breeding ground for scammers looking to take advantage of sports fans," the BBB said. If you believe you have purchased a counterfeit ticket, file a complaint with BBB at www.bbb.org/detroit. --Regulators warn consumers about investing their money into promissory notes. Some promise of guaranteed rates of 26% or more, but are scams. The Financial Industry Regulatory Authority notes that problems with promissory notes fall into three categories: fraud and deception of investors, unregistered securities and unregistered sellers. --Beware of e-mails claiming to be a court summons. The e-mail might read: "To view copy of the court notice, click here." But if you click, you download malware onto your computer, which can infect your computer and hunt for banking information. ___ (c)2014 the Detroit Free Press Visit the Detroit Free Press at www.freep.com Distributed by MCT Information Services |