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Oct 25

Company Selling Envelope Stuffing Scheme to Cease Marketing to Iowans

scam-alertDES MOINES – An Arizona company advertising that consumers can earn thousands per week by stuffing and mailing envelopes at home will cease marketing to Iowans, through an agreement with Attorney General Tom Miller.

The company, called Saguaro, of Scottsdale, collects up-front “application fees” of $100-$400, and claims to pay consumers $10 each time Saguaro receives a response to a mailing sent by that consumer. Saguaro suggests consumers can earn $1,000-$5,000 per week.

Miller alleges the claims are deceptive and unfair.



“We allege that Saguaro’s suggestion that you can get rich by stuffing and mailing its envelopes is a distorted picture of what you can reasonably expect as a consumer,” Miller said.

In addition to halting marketing to Iowa residents, Saguaro, and its owners, Roddy Hunter and Franklin Schaffer, agree to provide full refunds to Iowans.

Consumer Advice
Ads for envelope-stuffing opportunities generally claim that, for a small fee, consumers can earn a significant income at home. Consumers should be skeptical of this claim.

“Work at home schemes, including envelope stuffing, have been around for decades and almost always are money losers for the consumer who buys into them,” Miller said. “Be wary of these types of offers, especially those that charge you up front.”

According to the Federal Trade Commission (FTC)’s consumer information on envelope-stuffing businesses, “The only way you can earn money is if people respond to your solicitations the same way you responded. The promoters rarely pay anyone,” the FTC writes. “Promises of big earnings through an envelope-stuffing scheme are false.”

The Attorney General’s Consumer Protection Division recommends that Iowans research “work from home” program sellers and their schemes before sending money up-front. Consumers should understand exactly what they’re expected to do to earn money, how much they’ll be paid, how and when they will be paid, any costs they’re expected to pay, and who and how to contact a company representative if problems occur.

For more information or to file a complaint, contact the Consumer Protection Division through the Attorney General’s website at www.IowaAttorneyGeneral.gov or email directly to consumer@iowa.gov.  Consumers can also call the Consumer Protection Division at 515-281-5926, or outside the Des Moines area, toll free, at 1-888-777-4590.

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