| 24 COMMENTS HERE ]

Apparently, the Shop To Earn folks didn't like my recent posts too much. I've recently been receiving threatening emails from their attorney if I don't take down the entire site. How a post on the stock market or my kitchen involves STE is beyond me, but this is their tactic. To be honest, I wonder if it's about Search Engine Optimization and the fact that my post was the #1 placement on Google for "Shop to Earn scam" (now it's #3 due to 2 posts from Fraud Files Blog about my initial post by Tracy below, but she deserves the traffic, as she is better equipped to deal with this tactic and she's not backing down)? If you Google this same phrase, virtually every other result is propaganda from existing members. I don't think this is the way Google envisioned what results are provided to prospective members of a new organization: Threaten any criticism and get your own links at the top.




Here's email #1:

I represent ShopToEarn and advise them on direct selling legal matters. You
are on notice to CEASE & DESIST your disparaging and libelous references to ShopToEarn, including but not limited to the phrase "fatal flaw." The ShopToEarn program is legally and economically sound, and The Company will take all steps necessary to protect its rights.

Gerald Nehra

Attorney for ShopToEarn


Email #2

Your minor word changes DO NOT remedy the problem - the site should be taken
down within 24 hours or the company will pursue all legal remedies.

Gerald Nehra

Counsel to ShopToEarn

I had initially offered to stop posting on it, and I altered the original posts to ensure they simply reflected my personal opinion on various aspects of the program, but this is where they chose to take it. Since they are threatening unreasonable legal action, I have no choice but to start posting on this saga and ask for your help to defend the freedom of bloggers to criticize questionable businesses. This is America, the greatest country on Earth to live in (seriously). Free speech, but the most litigious nation on the face of the earth. Quite a balance.


I'd appreciate any advice from fellow bloggers/attorneys who have encountered this type of tactic or anyone who can enlist help and provide representation if it comes to that without wiping out a year's earnings from the blog on the first 4 hours of attorney's fees. I can envision this might be a good case to take to prove a point in the Blogosphere.


Here is the recent post on STE, in it's abridged format. Take a read, do think my opinions there should invite legal action, even if this were your company I was referring to? Seems totally innocuous to me, but I'm no lawyer.

Here's some food for thought though:
One of the primary tenants of the system is to utilize online shopping to maximize discounts. Whether or not you join, you should optimize your cash back from the credit cards you're utilizing.

I'm just directing readers to the full galaxy of ALL Cash-Back Cards so you can compare for yourselves - this index has several: CreditCards.com- Cash Back Credit Cards


THE CONVERSATION HAS MOVED TO DARWIN'S FINANCE FOR the 2009 UPDATE on STE. Please use that post for the latest on STE and Comments. They're closed here and accepted there; much easier to manage on the other blog.


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24 COMMENTS HERE

Anonymous said... @ July 15, 2008 10:07 AM

Are you sure this email came from a real lawyer associated with the company? I have received communications from laws regarding cease&desist too (not in relation to my blog - at least not yet) and they call came by postal mail. Usually certified mail too. I would think if legal action was to follow up a lawyer would want documentation of their communications.

Anonymous said... @ July 15, 2008 11:35 AM

I googled the lawyer and got MLMatty.com . . . this guy is apparently a hired gun for the multi-level-marketing industry (I would never call him a pyramid scheme lawyer tho) . . . that was a great post on Shop To Earn . . . it's sad that the MLM industry needs to bully others who criticize them . . . is there a free-speech advocacy group that could take up your cause and offer legal help?

if you publish his email address, I could send him an email asking him to send you $10, and if he forwards it to 10 of his friends, he could get $100 back from the people that they send it to.

Jae Jun said... @ July 15, 2008 12:12 PM

As Anon suggested, did they send you an "email" or actual letter or PDF attached to the email with proper letterhead?

Any subordinate could have been ordered to send that email.

In the event that it is true, I really see NO basis for what they say they will do.

You were writing your review and opinion.

Anonymous said... @ July 15, 2008 12:32 PM

Hang in there. This legal threat is totally bogus. It's amazing that a company wouldn't see how bad this makes them look. Tracy has it right, it definitely makes them look like they have something to hide.

Anonymous said... @ July 15, 2008 2:08 PM

Don't feel so bad. I just got an email from a customer on my e-comm site who placed an order 5 days ago. The item was out of stock at the time. He says he's suing me for fraud because he hasn't yet recevied the item after only 5 days! I hadn't even charge his CC yet! Chin up. There are many nuts out there. Good luck!

Everyday Finance said... @ July 15, 2008 10:28 PM

Thanks for your support everyone. Anything else you can do to spread the word on this and help take up the cause will ensure that in the future, you can continue to enjoy blogs that aren't just trying to sell you something. Criticism (especially of an organization like this) is a fundamental right in this country.

To answer some of the questions, he just sent me an email via my contact tab. There was no attachment.

"I am no longer reading/replying to your emails Gerry; they're sent to the spam folder", so I'd recommend dropping it and focusing on something constructive.

Each email was pretty vague with respect to what the problem is. I updated the posts to clearly highlight for anyone with a pulse what an opinion was in each case, but to no avail.

Apparently, if Gerry's upset that you've revealed their secrets on-line, as opposed to altering the post or removing it, the expectation is that your entire site comes down. Please, logic anyone?

In my opinion (ha!), this is a bullying tactic and now each person that Googles "shop to earn" will see the type of company they're dealing with.

Lawrence said... @ July 16, 2008 5:35 AM

Well, they can threaten all they want - saying "cease & desist" is not the same as serving a "cease & desist order."

http://en.wikipedia.org/wiki/Cease_and_desist

Unless he actually sends you a legally-drafted document (usually sent by certified mail or delivered in person), it has absolutely no standing at all.

So this is just bullying, plain and simple. They are hoping that the strong-arm tactics will make you comply - without spending a dime on actual lawyer time (since preparation of a C&D costs money).

Ignore it.

Anonymous said... @ July 16, 2008 10:18 PM

I've don't believe that your comments would lead to legal liability. You are entitled to your opinion, whether or not that opinion is critical about a company.

I'd go further and say that you could have said that "I found a flaw..." without the "I feel..." It is common knowledge that blogs are opinions, and you're entitled to one.

Finally, you are not infringing any TM (at least with the part still posted). You are not attempting to sell competitive products by misleading the public, you are just posting the results of your review.

I'd send them a letter back - telling them to cease and desist sending you cease and desist letters.

smerls said... @ July 16, 2008 11:14 PM

Anonymous at 10:18 made a suggestion that I was going to make, that is send them your own cease and desist letter or email. Basically call them on this. A real cease and desist order is an actual document not an email, unless they are trying in a friendly way correct something you said and let you know if you do not correct it then they will initiate a cease and desist order. So send them your own email saying if they do not cease and desist trying to bully you or provide specifics on what you said is wrong, you will take your own legal action!!

Lefty said... @ July 17, 2008 9:40 AM

This is pretty silly. I'd call their bluff (and possibly get in contact with the EFF, who's got a program to help bloggers).

I'd send back an email advising this shyster that the truth is an absolute defense against charges of defamation, and if they'd really like to have a court investigate the accuracy of the statements you've made about this outfit, on the public record, then they should go for it. I'd further tell them that, at a start, discovery is going to involve all documentation they've got on how well their "clients" did, monetarily, with this scheme at the end of the day...

BenGlassLaw said... @ July 17, 2008 1:30 PM

Dumbest way any biz can respond to criticism is to threaten a lawsuit. If you have a good product, killer guarantees, good testimonials, stand by them. There's always someone who will criticize you... so what?

Here's my post on the subject

http://greatlegalmarketing.clarislaw.com/

Anonymous said... @ July 17, 2008 6:47 PM

Wow...I read your post with interest, and frankly, it didn't actually scare me away from STE...that's how balanced I thought it was. Seems stupid of STE to do this..it now makes me suspicious.

Ronald J Riley said... @ July 19, 2008 10:04 PM

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Ronald J. Riley,


Speaking only on my own behalf.
Affiliations:
President - www.PIAUSA.org - RJR at PIAUSA.org
Executive Director - www.InventorEd.org - RJR at InvEd.org
Senior Fellow - www.patentPolicy.org
President - Alliance for American Innovation
Caretaker of Intellectual Property Creators on behalf of deceased founder Paul Heckel
Washington, DC
Direct (202) 318-1595 - 9 am to 9 pm EST.

Anonymous said... @ July 20, 2008 10:08 PM

I just spoke to some guy about 'Shop to Earn' and it sounds like a pyramid scheme. The name should read, Recruit to Earn. In fact, this is the only way people make any money up front. If you are considering paying the 450, think twice. I would much rather give my money to Exxon than Patrick Welsh. Stay away from this scam!

marie dunn said... @ September 23, 2008 12:39 AM

I frankly cannot believe that you people are for real. You obviously do not understand the law. If you are slandering a person or a company and especially if you are by your FALSE statement causing them to lose money, you should expect their attorney to be their advocate and pressure you to stop. Oh, and yes, your criticisms are false. It is NOT an illegal pyramid. It is a brilliant business model that benefits all concerned, including the large and reputable retailers that have partnered with this company. These well-known retailers (many of which are Fortune 500 companies)would not partner with a business that was not reputable and legitimate. You obviously don't know what an illegal pyramid is OR you don't understand the business you are so quick to critcize and dismiss. Too bad for you!

Everyday Finance said... @ September 23, 2008 8:17 AM

Hi Marie,

You obviously don't understand what I had initially posted. I had granted the attorney and members to highlight any inaccuracies in my article and I would gladly issue a retraction. Instead, he demanded that I take down the entire website, which is ridiculous.

I never called STE a scam, a pyramid, or illegal. By stating such, you have now slandered me.

But guess what? I'm not going to issue you a Cease and Desist order or sue you...because I'm not Shop To Earn.

btw - a brilliant business model? What are you smoking? Fortune 500 companies "partnering" with STE? There's no partnership whatsoever, it's simply an affiliate ad relationship. If questioned, Best Buy would say they've never even heard of STE, just like they haven't heard of me. I have affiliate ads on my site from major companies...and it didn't take "10 years" to establish.

Good luck signing up more members.

Anonymous said... @ September 30, 2008 11:21 PM

I think the solution is quite simple:

Step 1: Open a blog in a foreign country where US laws can do nothing.

Step 2: Post whatever you want on your foreign blog.

Step 3: Feed you foreing post in your US blog. The "foreing blogger" will carry full responsibility and US attorneys will have nobody to send nasty emails to.

Step 4: Alternatively refer your readers to the foreign post and ENJOY FREEDOM OF SPEECH!!!

By the way, you could also re-post the original text in your foreign blog. I would love to read it...

Anonymous said... @ October 12, 2008 9:24 PM

Why are people so much against MLM's? It's a great way to make money without intermediaries. Specialy on these rough times, people have the right to get some extra cash by doing something so simple as shopping online and referring others to do so. That's what SHOP TO EARN is!! No more complication!! The money you pay to join $448.00 is to have your own webpage in order to buy the things you already buy!!. Is like going to the same store entering through another door. I'm in it, I've received my money, and I'm helping others to do the same. There's lots of MLM's that have been around for YEARS. Amway, 49.Avon 102, Mary Kay 50+, etc. Guys, be conscious, don't talk without knowing what you're saying. Experience and THEN talk. Don't take away the opportunity from other people to make a better living.

Sheila said... @ October 30, 2008 12:56 PM

I got suckered in to the whole travel business website thingy and I too, gave $450 for what? A website that only earned me $16 bucks per airline reservation? And, I only would make money if I recruited others to do the same? That was complete hogwash. I couldn't even order business cards unless I did it thru their "approved" vendor at twice the amount of regular printers. They are counting on you, indeed, PRAYING, you invest your $450, and quit after a couple of months, if not weeks. It's such a scam. Didn't your mothers tell you "If it sounds too good to be true, it probably is?" What's next, you guys who believe this crap are going to sell that knock off perfume in parking lots? Puhleeze. Historically, you NEVER hear of a multimillionaire who made it by joining a MLM, just the guy who started it and suckered the rest of you! Wake up. The only way to make money is good, hard, honest work. There is NO free money folks, hate to burst your bubble.

Anonymous said... @ November 16, 2008 12:28 PM

MLM's, in my opinion, are in some ways brilliant. Where else but the USA can you legally scam poor people with the promise of the "possibility" of becoming rich? And "all you have to do is invest $$$ tat you really don't have, and give up your job (because it is NOT part time scamming that will get you more money)". "Build your down-line" & "keep buying your own product".
These companies are mostly legitimate, but they tend to use bullying techniques (in my personal experience with a company that rhymes with "scamway") and, when that doesn't work, they try to shame you and then degrade you for not doing what they want you to do (when in actuality, you just messed up their "down-line"... their money).
Joining these types of organizations are like joining a wholesale club, great if you like their products... not so good if you are trying to sell "door-to-door".
Just my thoughts, and experiences. Hope you like or learn.

Anonymous said... @ January 26, 2009 11:01 AM

Yea, this Gerry Nehra guy was crony for the Amway people (who suckered my dad into the scheme while I was a kid... and yea I'm that young LOL). A friend was trying to get me to sign-up with STE and I did my homework on them. The minute I saw this guy was linked to Amway at some point, I was out like a light. Keep up the good work. Free speech in America, live on!

Anonymous said... @ February 8, 2009 11:15 AM

What are you? A Saint? Amway is just another company. They ALL operate the same way. You need to be smart at these things. SellToEarn is legit and people are earning lots of money otherwise they would had left it within a few months. Do you know anyone that left it? DZo you know anyone that worked hard and did not make the money?

You should never make decisions based on emotions. It is all business.

Anonymous said... @ March 9, 2009 3:55 AM

LOL! The above post must be from STE themselves! "ALL operate the same way"... only in a MLM scam world is that business plan used. These scammers make me sick!

Everyday Finance said... @ April 4, 2009 4:21 PM

Folks, it's been fun, but the comment thread has moved to the 2009 STE Update Article and Comment Forum

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