Narc That Car has told the Dallas Better Business Bureau that only “1% of total commissions paid out to independent consultants are for the sale of license plate information to third parties,” the BBB said today.
That 1 percent, which Narc That Car referred to as “client share,” is the “only repeatable form of compensation which does not involve the recruitment of others into the opportunity,” the BBB said.
Although the BBB said Narc That Car has provided “some” information since the organization opened an inquiry Jan. 18, the BBB added that it “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”
“The BBB warns consumers to be wary of participating in business opportunities that primarily derive compensation through the recruitment of other participants rather than through the sale of a product or service,” the BBB said.
Critics have raised concerns over privacy and the propriety, safety, and legality of Narc That Car, which says it is building a database of license-plate numbers for sale to companies that repossess automobiles.
Longtime MLM aficionados have questioned whether Narc That Car affiliates are selling a product or a business opportunity. The BBB’s interim report — and Narc That Car’s 1 percent assertion — is apt only to fuel the concerns.
A note on the BBB’s website says the inquiry remains open and that it still is awaiting responses on Narc That Car’s advertising claims. Visit the BBB site to read the updated report, which includes a list of “other facts” it has learned during its inquiry.