Trucking opportunity turned out to be a scam

I’ve written many earlier columns about bogus business opportunities that hopeful entrepreneurs invest in, only to find out that the whole deal was a scam. Recent cases have included promises to help people achieve financial independence by investing in real estate, operating an online store on Amazon, and becoming a telemarketer. A lawsuit filed by the FTC and the Florida Attorney General involves a somewhat unique, but still fraudulent, business opportunity.

RivX is a “trucking automation” company that enticed consumers to pay $75,000 or more to buy trucks that many never received. Once consumers paid for the truck, RivX would operate it on their behalf, securing loads, hiring drivers, and managing all the logistics.

RivX claimed that consumers would make passive income of $5,000 to $7,000 per month starting in as little as 60 days. Its online videos said:

• “We are making sure that that truck is operating, it’s consistently bringing in income, it’s covering all the expenses and it’s also leaving that amazing passive income every single month.”
• “This is a literally done-for-you business model. You are literally going to lift as little as a finger as you have to… this truck will literally just become a passive income asset.”
• “We want to make sure the results that we create for you [are] passive… that money’s going to come in like mailbox money, coming in every single month.”

The company provided consumers with documents that said if they failed to make the promised profits, RivX would return their initial investment. But in fact, while owners pocketed millions of dollars, very few consumers even received their trucks and none of them recouped their investment, let alone made a profit.

RivX was charged with violating the FTC Act, the FTC’s Business Opportunity Rule, the Florida Deceptive and Unfair Trade Practices Act, and the Consumer Review Fairness Act. The last charge was in response to the company including a non-disparagement clause in its contracts that threatened consumers with a penalty of up to $100,000 for publicly criticizing RivX or leaving a negative review online. A federal court issued a restraining order halting the company’s operations and freezing its and the owners’ assets.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said, “Defendants tricked consumers into paying tens of thousands of dollars each with false promises that they would operate a trucking business for the consumer. Instead of receiving the lucrative returns promised by defendants, many consumers lost their life’s savings. The FTC will continue to aggressively pursue those who prey on consumers with bogus earnings claims.”

The FTC and BBB offer these tips to avoid becoming the victim of a business opportunity s[RH1] cam:

• Research the company and offer online using words like “complaint,” “review” or “scam” to see what people say about it before paying. Check out the company with the BBB.
• Steer clear of companies that use high-pressure sales tactics. It’s a red flag if someone says you must act immediately or discourages you from taking time to do some research.
• Question promises of big money or profits. Only scammers guarantee success or a return on an investment.
• Read success stories and reviews with skepticism. Many are faked or exaggerated.
• Discuss the opportunity with trusted advisors or other successful businesspeople.