Skip to main content

Sales Scam Disguised as Recruitment Beware of Employment Traps

  • 2016.06.15

With the summer vacation fast approaching, many young people will be looking for jobs to earn pocket money and gain work experience.  Some unscrupulous businessmen use "recruitment" as a ploy to "sell" their services or products to those socially inexperienced, claiming that the products are essential to job opportunities or yield better income.  However, these services or products may eventually turn out to be "pay for your own job" scams, i.e. before one can earn any income, they have to pay a large sum in advance.  The Consumer Council warned "job seekers" to stay alert and not to be turned into "victims".

Case 1:  Selling Photo Portfolio in name of "Free Training"

A complainant was invited by Company A's "talent scout" on the street to feature in a short video.  He was asked to fill in his personal data and had his profile pictures taken in their office.  As the complainant's acting skill was criticised during his audition, Company A's staff told him that free training would be provided but he had to pay $8,800 for personal portfolio production.  The staff claimed that the portfolio was meant to build profile, so that the complaint would be known to other industry players and hence get job opportunities.  The staff claimed that the cost could easily be recovered by earnings from a few acting jobs.  After much persuasion, the complainants agreed to pay.

Upon receiving notification, the complainant arrived at the filming location, uttered a few lines and was paid $400.  The complainant enquired of Company A about the basis on which he had been paid, but the staff failed to neither give an immediate response.  Nor did he tell him the schedule of the training sessions.  Subsequently, the complaint perused the contract signed, finding that the "Image and Acting Skill Training" were not free and the related fees were included in the so-called production cost of his personal photo portfolio.  He requested for cancellation of the contract.  Company A emphasised that since they had already lined up a shooting job for the complainant, no refund would be made.  The complainant then sought help from the Council.

After intervention by the Council, Company A approached the complainant who eventually accepted the 50% refund arrangement.

Case 2: Turned from "job seeker" to "victim"

In response to Company B's on-line recruitment advertisement for dubbing specialist, the complainant enquired of the Company over the phone, and made an appointment for interview.  Company B's manager commented during the interview that the complainant performed well but her pronunciation needed improvement.  The manager then suggested the complainant enroll in 10 sessions of their dubbing course with a total fee of $9,000, claiming that the instructor was a veteran dubbing specialist from a Macau TV station.  The manager then assured the complainant that she would start working upon the completion of the fifth session with an income of at least $300 per session.  Attracted by the purported remuneration, the complainant enrolled in the course.

As the complainant was making the payment, the manager recommended for her some skin care products which they claimed to be widely used among models.  The sales talk lasted for about half an hour until the complainant left the office with refusal.  Later on, the complainant saw someone sharing similar experiences online.  When the complainant called the Macau TV station to verify the instructor's qualification, she was told that the instructor was not their staff.  The complainant, then, sought assistance from the Council and requested for a refund.

Company B explained that the instructor used to teach in the training classes for artists of the TV station.  The Company had arranged training sessions for the complainant but she failed to turn up.   They also claimed that the complainant had endorsed the "non- refundable" clause voluntarily.  Therefore Company B would not refund but rearrange other classes for the complainant.  The Council relayed this message to the complainant but has then not heard further from her.

Case 3: Pay through the nose for joining career

The complainant was very interested in the door-to-door pet beautician recruitment advertisement posted by Company C in an online discussion forum and enrolled in their seminar.  Company C briefed her on the remuneration and stated that they would refer to her a certain number of customers.  The complainant was so interested in the potential income and job prospects.   Despite having to sit through 40 to 60 hours of training, she paid $3,000 for a seat in training and made an interview appointment.  

In the subsequent meeting, Company C's staff emphasized repeatedly that the Company had a huge network of clients and, graduates of the Advanced Level training programme could earn up to $500 - $700 per job with an average monthly income of $15,000 in the first six months.  The complainant finally paid $35,000 as tuition fee.

Upon completion of the first three classes, the complainant inquired of Company C on the arrangement for signing a formal contract.  After several enquiries, the complainant was given a document that looked like a draft contract which carried some terms and conditions that had never been mentioned.  For instance, the beautician shall be liable for damages if she fails to deliver services to customers referred by the Company;  conversely, the Company shall not be liable for any damages when it fails to refer as many as the customers to the beautician it has promised; besides, the beautician shall pay commission for the referral.  The complainant expressed that if she had known there existed such harsh terms, she would not participate.  After rounds of unsuccessful negotiation with the Company, she filed a complaint with the Council.

Company C told the Council that they had received a letter from the complainant's lawyer and they would have the dispute adjudicated by the Small Claims Tribunal.

To prevent job seekers falling into employment traps, the Council has the following advice to share:

  • Avoid purchasing any goods or services purportedly conducive to career development or self-improvement on the spur of the moment.  Seek advice from family;
  • Beware of sales claims that look attractive such as "no experiences required" and "lucrative income".  Do not act in haste and always benchmark your qualification against the comparable pay level in the market;
  • Check if the company will provide a formal contract clearly stipulating the conditions for service, such as scope of work, reward calculation and warranty on work opportunities;
  • Read carefully and fully understand the terms of the contract preferably in an environment free from pressure before signing.  Be wary of unreasonable, unfair or unfavorable terms, such as those providing that the employer shall be in any event not liable to refund.

The Consumer Council reserves all its right (including copyright) in respect of CHOICE magazine and Online CHOICE.