FTC Nabs Companies Peddling Bogus Federal, State Job Opportunities

WASHINGTON, March 20, 2001 -- The Federal Trade Commission today announced five law enforcement actions against nine companies and seven individuals promising jobs with the federal or state government or the U.S. Postal Service.

Through classified ads, telephone pitches, Internet advertising and training school seminars, the companies misled consumers into paying $45 - $80 for practice exams and application forms. The defendants in four cases falsely represented that permanent positions with the Postal Service or federal government were available where the classified ads were placed, and that consumers were likely to score high on any required exams and receive jobs using their materials.

The fifth case involved a company operating in a similar fashion but offering employment opportunities with state government agencies. With these cases, the FTC has now brought a total of nine law enforcement actions against 19 companies and 26 individuals, stopping nearly $15 million in annual fraudulent sales.

"Recent announcements of layoffs are sending thousands of people to the classified pages to look for work," said Jodie Bernstein, Director of the FTC's Bureau of Consumer Protection. "Unfortunately, some classifieds mislead job hunters about the availability of jobs. There are two things for job hunters to remember: information about government jobs is always free and guarantees of government jobs are always false."

"The U.S. Postal Service will continue to work closely with the FTC in a joint effort to stamp out fraudulent claims by individuals and companies regarding postal employment and postal exam Test 470," said Mary Anne Gibbons, Vice President and General Counsel of the U.S. Postal Service.

In most instances, the companies operated similarly, placing classified ads in newspapers across the United States announcing that jobs were available with the U.S. Postal Service or federal or state government. The ads also described the jobs as providing generous wages and benefits and invited consumers to call a telephone number (often toll-free).

The FTC also announced a new consumer education package -- FTC Tips for Job Seekers.

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