Consumer advice information

Homeworking schemes

This guidance is for England, Scotland and Wales

Have you seen a job offer, received a text out of the blue or spotted a post on social media claiming that you can earn money from home or in your spare time? Did it catch your attention? You will need to find out if this is a genuine business venture or if it is, most likely, a homeworking scam. These scams rely on lots of people sending off money on the promise of high or unlimited earnings but, you are unlikely to receive any payment and may even lose money. You may be recruited to become part of an illegal pyramid-selling scam then enticed into signing up friends and family who end up getting scammed too.

These scams are really common and varied but can involve completing bogus online surveys or assembling products at home where you often have to buy expensive kits as a start-up. When you send your finished products back they will fail the quality check, regardless of how well you have done the job.

There are steps you can take to try and ensure the business you are dealing with is genuine.

It is important to remember that all scams are fraud and a crime.

TYPICAL SCAM HOMEWORKING JOB OFFER

You may have seen this type of offer before; posts on social media, online, by email or text message or perhaps on information boards in your local store.

HOMEWORKERS REQUIRED URGENTLY

UNLIMITED EARNINGS. NO QUALIFICATIONS OR PREVIOUS EXPERIENCE NECESSARY

THERE ARE LOADS OF COMPANIES AND CONTACTS OUT THERE AND WE NEED YOUR HELP!

ALL YOU NEED IS A SMARTPHONE, TABLET OR LAPTOP TO GET STARTED

CLICK ON THE 'APPLY NOW' LINK OR MESSAGE FOR DETAILS

People are drawn to offers of this type, that come with the promise of making money at home. The words used may be different to the example, but the common thread is that they promise high earnings for relatively little work, an up-front fee is usually payable and the details of the actual work to be done is vague.

BOGUS ONLINE SURVEYS

There are criminals who claim to offer you cash to complete surveys, trials or carry out market research with payment being made to you by bank transfer or via an online payment system. Criminals will even offer to sell you access to online survey businesses by promising you access to potentially high earnings.

ENVELOPE STUFFING

Typically, the details of the scheme will be generally be advertised on social media. The advertisement will give you enough information to capture your interest by highlighting the possibility of big earnings for relatively easy 'envelope stuffing' work.

The advertisement will ask you to 'register' with a scheme. The wording of some schemes is very clever; read it carefully and look for the small print. There will usually be a request for a payment of a fee. You pay the fee, only to find that you have bought a 'pack' that you have the right to promote and re-sell to others. That is where the envelope stuffing comes in. Your so-called income would come from other people buying a copy of the pack from you.

Some scheme operators are so confident in their ability to defraud people, they include accurate information buried within their terms and conditions on what the scheme really involves.

This type of envelope scheme is just one of many. Other schemes involve:

filling envelopes with 'circulars' or other advertising material
offering to supply you with a list of 'homeworking opportunities', which turn out to be a list of similar envelope stuffing schemes
you pay for a starter pack and any work you do addressing envelopes is continuously returned to you as not of the required quality and therefore you don't get paid

ASSEMBLING PRODUCTS AT HOME

Other homeworking schemes require you to buy kits for assembling products at home. The assembled goods are then returned to the organiser for payment. The products can include craft goods and decorations.

How do these schemes work? You respond to advertisements and receive the introductory information. You may be required to pay a registration fee and will also have to buy the un-assembled products in kit form.

Once the kit is received, you will be expected to assemble the products and return them to the organiser. The documents will state that for every correctly assembled product, you will be paid a fee. However, the organiser has complete control over whether the product passes their 'quality check'. Your products will never pass quality control and you will never be paid. In some circumstances, the organiser may ask you to part with more cash to buy more kits, but the outcome will remain the same. You will be left with useless, expensive products that you have paid for and spent time assembling, which have been rejected.

HOMEWORKING CHECKLIST

Not all homeworking opportunities are scams. The following tips may help you to work out whether or not a homeworking opportunity is genuine:

stop, think and be sceptical
be cautious if the details of the homeworking scheme are vague
be prepared to ask lots of detailed questions and find out as much about the job as you can
be sceptical about advertisements that claim to make you rich very quickly or promise high earnings for what appears to be very basic work
do not pay money upfront to 'register', buy a starter pack or attend an expensive training course. Genuine employers offering genuine employment will not expect you to make an upfront payment of this type
do not allow yourself to be pressured or enticed by false deadlines or time-limited 'bonuses' to transfer money quickly
genuine employers will give you their full contact details allowing you to research the company before you go ahead
be aware that criminals may ask you for your bank details to set up payments. They may then use these details to take money from your account
if the advertisement you have come across resembles the typical advertisement in this guide then avoid it
avoid any scheme where you have to recruit others or pay an upfront fee
do not 'buy' customer leads. You could be scammed into unwittingly contacting other people with false offers of work
avoid organisers that use only mobile numbers or email addresses such as '@hotmail'. This could be an indication that they are not a reputable trader. Look for a landline that can be traced and searched on the internet
be aware of pop-up advertisements and adverts on social media platforms on dubious homeworking websites that appear to offer 'cheap loans' to those who are 'in-between jobs'. They are likely to be scams
if you are asked to provide payment or financial details by an employer who advertised via an online job site, report it to job site as soon as possible
be aware of schemes or adverts that ask to use your bank account for any reason. This could mean you become what is called a 'money mule' and you could be breaking the law. For more information see the Action Fraud website
if you are considering self-employment as a direct seller, selling goods via a catalogue left at a consumer's home or through a home demonstration of a product, check that the supplier is a member of the Direct Selling Association. Use the online contact form or email dsaoffice@dsa.org.uk
be aware that some streets are 'No Cold Calling Zones', where residents do not wish to have cold callers at their door. Look out for 'do not call' stickers. For more information on these, contact the Citizens Advice consumer service.

HOMEWORKING SCAM: WHAT ARE MY RIGHTS AND WHO DO I REPORT IT TO?

The Consumer Protection from Unfair Trading Regulations 2008 prohibit commercial practices that are unfair to consumers. If a trader misleads you or engages in an aggressive commercial practice and you make a decision to purchase goods, services or digital content that you would not otherwise have done, the trader may be in breach of the Regulations. If you have been misled or the trader has behaved aggressively, report your complaint to the Citizens Advice consumer service.

The Consumer Protection from Unfair Trading Regulations 2008 also include a list of specific trading practices that are banned, one of which is pyramid selling. A pyramid-selling scheme, which relies on individuals obtaining fees from recruiting other individuals to the scheme rather than from the sale of goods, services or digital content, would breach the Regulations. If you come across a scheme of this type, report it to the Citizens Advice consumer service.

If you enter a contract because a trader misled you or because the trader used an aggressive commercial practice, the Consumer Protection from Unfair Trading Regulations 2008 give you rights to redress: the right to unwind the contract, the right to a discount and the right to damages. See the 'Misleading and aggressive practices: your right to redress' guide for more information.

If you have been the victim of fraud via a homeworking scheme you can report it to Action Fraud or for advice call the Citizens Advice consumer service. If you have paid any money, contact your bank immediately.

If you see advertisements for homeworking schemes that you think are misleading, you can refer them to the Advertising Standards Authority or you can report them to the Citizens Advice consumer service. The UK Code of Non-broadcast Advertising and Direct and Promotional Marketing (CAP Code) sets out the rules for non-broadcast advertisements, direct marketing communications and sales promotions. Section 20 of the code covers the Advertising Standards Authority's expectations of employment, homework schemes and business opportunities.

IN THIS UPDATE

General updates to wording.

Last reviewed / updated: January 2024

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.

The county council is not responsible for this information.