Drivers fork out $75,000 for trucks but they’re never delivered – a line in the contract meant they couldn’t complain
Drivers are unable to file a complaint despite being alerted to a trucking fraud that cost some of them up to $75,000.
Customers who invested $75,000 in the “trucking automation” startup RivX were assured either success or a return on their investment.
However, the FTC and the Florida Attorney General have now filed a lawsuit since many people never received the truck they paid for.
RivX claimed to operate the automated vehicle on behalf of the customers, employing drivers and handling the logistics after they had given the money.
RivX stated in its marketing materials that users might earn $5,000 to $7,000 per month in passive income in as little as 60 days.
“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,” a video on the internet stated.
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“This business concept is essentially done-for-you. You are basically going to live your life with only a finger.
“This truck will literally just become a passive income asset,” it went on.
“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.”
Additionally, customers were assured that if they did not generate the anticipated returns, RivX would reimburse their original investment.
Actually, none of them recovered their money, and very few ever even got their trucks.
No consumers turned a profit, but the owner made millions of dollars in the meanwhile.
RivX is accused of breaking the Florida Deceptive and Unfair Trade Practices Act, the FTC Act, and the FTC’s Business Opportunity Rule.
Additionally, it was accused of incorporating a non-disparagement language into its contracts in violation of the Consumer Review Fairness Act.
This provision subjected consumers to fines of up to $100,000 for any online or public criticism of RivX.
A federal judge granted a restraining order freezing the company’s and its owners’ assets and stopping its operations.
Director of the FTC’s Bureau of Consumer Protection Samuel Levine stated, “Defendants deceived consumers into paying tens of thousands of dollars each by making false promises that they would run a trucking business for the consumer.”
“Many customers lost their whole life savings instead of getting the rich returns that the defendants promised.
“The FTC will continue to aggressively pursue those who prey on consumers with bogus earnings claims.”
Bank tips for avoiding scams
Because artificial intelligence is being used to make frauds more sophisticated, it’s critical to understand how to recognize a scam:
- Be skeptical of online deals that seem too good to be true, especially on social media.
- Scammers will often use tactics to make you panicked so you make quick decisions – be cautious if you are told to take immediate action and verify who has contacted you.
- Chase Bank warns customers to “never return any unexpected funds without calling Chase first.”
- Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.
- Unless you 100% know who you are talking to, never give someone remote access to your device.
- Never accept help from strangers at an ATM and always be vigilant when making withdrawals.
- Do not send money or click any links indicating that you have won a prize.
Source: Chase.com
Advice on how to prevent business opportunity frauds has been released by the Better Business Bureau and the FTC.
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These include looking up the business online and looking for any results that contain the terms “scam,” “complaint,” or “review,” before making a purchase.
Additionally, businesses that use high-pressure sales techniques or make extravagant investment promises are cautioned against by potential investors.
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