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Consumer Alert: Beat the System
Consumer Alert: Beat the System
Beat the System is a
network marketing program put together by a company that calls
itself Fidelity Alliance Marketing Group, which does not appear
to be associated with any other product or service.
The product offered by the Beat the System program is a series of discount benefits,
such as grocery coupons and car purchase programs.
The real lure, as with most multi-level marketing programs, is
the business opportunity represented by finding other people who are also
interested in the business opportunity rather than the product that the
business opportunity offers.
Based on sales closing ratios that are described as "conservative", Beat the System
includes earnings projections ranging from $12,500 to $86,000.
Testimonials from participants claim to be wealthier by $35,225 and $58,000 (of
which $25,000 constitutes savings from the program).
You will need to decide whether or not purchasing their savings programs will
actually make you $25,000 wealthier!
The cost to obtain membership benefits is $1,250.
What do you get for this money?
Consider the following when evaluating these benefits:
Grocery coupon programs, car purchase programs, and
2-for-1 hotel programs are available elsewhere, separately
or combined with other benefits, for something under $50 each.
Mortgage acceleration programs usually provide for 13 months
worth of payments to be paid each year, on a bi-weekly basis.
The savings accomplished through such a program can be accomplished
directly, without paying any additional fees.
Airline discount coupons are frequently offered as incentives
with credit cards, other travel discount programs (typically available
for under $50), and from time to time, with consumer purchases of
specific brands of products such as soap and toothpaste.
Most of the time, these coupons carry significant restrictions on
the fares to which they apply.
Thus, to use a coupon that promises you a $100 discount, you might
have to use a fare that cost $200 more than the best fare you
could otherwise use.
- grocery coupons
- mortgage acceleration program
- car locator and negotiator program
- 50% off or 2-for-1 on hotels and cruises
- discount aircheck program
Any viable multi-level marketing program must have a product or service
that can stand on its own merits, without the lure of the business
This is primarily a subjective criteria that, if not met, will not,
on its own, normally subject the program to prosecution.
However, any program that fails to meet this criteria is tantamount
to a pyramid scheme.
In the United States, the Federal Trade Commission
has rules pertaining to unfair and deceptive business practices.
These rules do not specifically address multi-level marketing programs;
however, the FTC does have regulations regarding the representation
of earnings claims which are potentially violated by Beat the System.
In addition to the FTC, various states have laws against pyramid schemes.
(Click here to read the
law in one state.)
While these laws differ in significant ways, they may limit the
amount that can be required to participate in the business opportunity
to the cost of required materials, such as disclosure and enrollment forms.
Many states also prohibit any requirement to purchase the product
or service offered in order to participate in the business opportunity.
If you are a participant in a scheme that is illegal in your state, you
could potentially be named as a defendant in a criminal action.
Do not rely on claims that the program is legal in your state... check
your states' statutes or your states' Attorney Generals office for the
applicability of such laws.
The following contact information for "Beat the System" is provided for identifcation purposes only:
Fidelity Alliance Marketing Group, L.L.C.
New York, NY 10018
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