Business opportunity to earn money by collecting license plate sightings may be a pyramid scheme
Dallas, TX, June 2, 2010 -- A business opportunity offered by Crowd Sourcing International (CSI) in Dallas claims that participants can earn money by collecting information about car license plate numbers and the cars’ locations. But the plan may be a pyramid scheme, warns the Better Business Bureau serving Dallas and Northeast Texas. There does not appear to be a substantial source of income for participants (“independent consultants”) other than the money paid in by other participants.
In a pyramid scheme, participants make most of their earnings by recruiting others rather than from sales of a product. The Texas Attorney General’s Web site warns, “People who get in on a pyramid scheme early might make money in the beginning, but the schemes inevitably collapse, victimizing the recruits at the base of the pyramid.”
The BBB first asked
Crowd Sourcing International about the business opportunity in January, 2010, and the business provided some information. In May, 2010, CSI provided the name of one client. The information did not resolve the BBB's concerns as to whether the company is selling a bona fide product with a true market value. In fact, the client's identity only raised more concerns, which the BBB communicated to the company.
“Although Crowd Sourcing International claims that the information collected is purchased by clients such as auto loan companies, CSI has provided the name of only one client,” said Jeannette Kopko, spokesperson for the BBB serving Dallas and Northeast Texas. “The BBB questions whether that client, which has links to CSI, is independently paying CSI for car sightings.”
Crowd Sourcing International, 1111 Empire Central Place, Suite 200, Dallas, was formerly known as Narc Technologies and has also done business as “Narc That Car.” Through a multi-level marketing plan, independent consultants are recruited to pay a $100 sign-up fee and a monthly $5 processing fee for commission payments, and offered a Web site for $24.95. Participants can earn up to about $20 a month for up to 10 license plate sightings , and can earn a part of the payments for license plate sightings to participants they recruit. Independent consultants are told they can also earn commissions by finding clients such as auto loan companies to pay for the license plate sightings.
But if there isn’t substantial income from clients paying for the information collected, then the main source of income available to CSI to pay independent consultants would be from sign-up and other fees paid by participants.
CSI came to the attention of the BBB in Dallas in January, 2010. Since the first of the year, the BBB has received over 28,000 inquiries – requests for the BBB Reliability Report® – on the business.
CSI has a BBB rating of “F”, on scale from A+ to F. The reasons for this rating include:
• 21 complaints filed against business
• 2 unresolved complaints filed against business .
• 5 serious complaints filed against business.
• Business has failed to resolve underlying cause(s) of a pattern of complaints
• Advertising issue(s) found by BBB.
• Length of time business has been operating.
Complaints on CSI are from independent consultants alleging misrepresentation of the business opportunity; non-payment of commissions; difficulties in cancelling and getting automatic charges stopped; and difficulties contacting the business.
A man in Bloomington, IN, complained: “I joined NARC (which is now called CSI) at the end of January. They hit my account at $124.95. I brought in several customers and entered my license plates from January through April. I received my first check of $75 minus $5 processing fee. They hit my credit card on March 1 and March 29 for $24.95 each time (total $49.90). I was never paid my other two fast start bonus of 2 times $25 which equals $50 and my license plate entries for January, February, March and April … I have called each week for the past four weeks and still get the same song and dance that it is being looked at by accounting.”
CSI answers complaints, stating that refunds or other adjustments have been made, or that it will do so.
The BBB offers these tips for anyone considering participation in a business opportunity:
• Have a clear understanding of the business opportunity. How do participants earn money? You may wish to review the contract or agreement with an attorney who is familiar with business opportunities to make sure you understand it and that all promises are in writing.
• Consider the market for the product being sold. The Texas Attorney General’s Web site advises, “Before you join, be sure the product offered is something for which there is a market. Ask what the average monthly retail sales are per salesperson. Be wary of anyone who tells you that you do not have to sell anything to make money. For it to be legitimate, commissions must come from the retail sales of goods, so at some point someone will have to sell something.”
• In a multi-level marketing plan, participants earn money through sales of the product and by recruiting others in order to receive commissions on their sales of the product. Consider your own ability to recruit, train and motivate others to sell.
• Check out business opportunities with the BBB. Start at
www.bbb.org and click on “Check Out a Business”. If the BBB has a Reliability Report on the business, it will include basic information, the BBB rating, and customer complaint history, if any.
To file a complaint with BBB, start at
www.bbb.org. To file a complaint with the Texas Attorney General, go to
www.oag.state.tx.us.
About BBB serving Dallas and Northeast Texas
The Better Business Bureau of Metropolitan Dallas, Inc., is an independent, 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 standards of ethical business behavior. BBB services include BBB Reliability Reports® on businesses, complaint resolution services, advertising review, and information on topics affecting marketplace trust. The BBB serving Dallas and Northeast Texas was founded in 1920 and is one of 124 BBBs serving the U.S. and Canada. The BBB System evaluates and monitors more than 4 million local and national businesses and charities. Please visit www.bbb.org for more information.
###