Better Business Bureau Warns about Possible Pyramid Scheme

Hundreds of Consumers Reach Out to BBB for Help

8/18/09

Akron, OH – The Better Business Bureau serving Ashland, Medina, Portage, Richland, Summit & Wayne Counties warns consumers about iJango, a company making big promises about unlimited cash income to consumers. Better Business Bureau investigations indicate the company may be an illegal pyramid scheme.

The company, based in Austin, Texas has received hundreds of inquiries from consumers nationwide over the past two weeks. Because of this increase in traffic, the BBB of Central and South Central Texas met with iJango’s CEO, Ryner Smith on August 3rd, 2009, to get clarification about 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, and the reason for this rating is because the Better Business Bureau is concerned with the industry in which this business operates.

    This self-described multi-level marketing company 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:
  • The recruitment of other individuals to purchase the opportunity and the recruitment of registered customers.
  • Commission on iJango’s commissions that are generated by Web site traffic and purchases through iJango Web site “portals.”

However, complaints received by the BBB of Central and South Central Texas allege concerns with the delayed availability or use of the iJango portal. The BBB of Central and South Central Texas 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. BBB 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.

About BBB
BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 125 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than four million local and national businesses and charities. Please visit www.bbb.org for more information about BBB.