We've all got good ideas we think could make money. But people who try to turn their inventions into big bucks may end up losing thousands. ABC2 News Investigator Joce Sterman explains why some invention help companies may not be much help at all.
From the Flowbee that cut your hair using a vacuum to the Snuggie, that infamous blanket with sleeves; every once in awhile, those little ideas turned into big bucks. And Megan Beeler and her husband thought they could cash in with the next big thing. The Savage resident tells us, "The idea of being able to put something out there that nobody has and everybody wants, anybody would want that."
But not everybody knows how to handle the gargantuan task of patenting their product and getting it off paper and onto store shelves. So many, like the Beeler's, turn to invention promotion companies like Advent Product Development. Beeler says, “They made the idea sound so good, that it could be so successful."
That potential for success comes at a price, as the Beeler’s were told upfront. The couple paid Advent more than $1,000 to evaluate their idea and see if it already existed. Then they handed over almost $10,000 for development and patenting. That kind of cost is typical for the entire patenting process according to local lawyers who tell us it can be an expensive undertaking. But the Beeler's became frustrated when more than a year into the process, the couple says the only sign of progress they had was an unimpressive pamphlet. Rich Beeler tells ABC2, "We want this over. We want our money back."
This Maryland couple is not alone. Consumer sites and inventor blogs are filled with accusations about Advent and other invention companies from people who say they paid money but got no results. The U.S. Patent and Trade Office posts similar complaints on their website. But many people don't even know that list exists and they haven't heard the Federal Trade Commission warning that these companies are risky business. FTC Senior Trial attorney Liz Tucci says, “I can't say that every company is a fraud in this area. I'm just saying you really need to be careful because the track record in this area is not good."
Tucci says the agency has won major cases against several other invention companies, getting millions after busting them for deceptive practices. She says, "Most of the companies have almost no successful inventions or very few." The Inventors Protection Act of 1999 requires these companies to let you know exactly how many success stories they can claim. But as Tucci explains, there’s one problem with the system, “There's no agency that enforces violations of that act."
That means that consumers who don't know numbers have to be disclosed may be misled. But even when the shocking figures are put out there, thousands still sign on. The Beeler’s were told that since 1998 Advent positively evaluated more than 9,100 inventions, saying they had a shot at success. The company also disclosed that nearly 4,100 of those customers signed with the company. But in the end, not a single one made enough money to cover the costs they paid out to the company.
It’s that kind of rate that raises an alarm with the Better Business Bureau. Angie Barnett with the BBB of Greater Maryland says, “We do believe there are some questionable practices with these businesses." She tells ABC2 that concerns about success rates and a lack of confidence in the process are part of the reason why her branch of the BBB has decided to stop rating invention companies, including Advent. Barnett says, "It's very hard to tell, if indeed, there is a result for the consumer."
BBB locations across the country show varying results for Advent's satellite offices. We found an F-rating in California and a D- in Houston. That was enough to question the company's BBB accreditation in their home state of South Carolina. ABC2 news called the BBB there and their President says they're now investigating.
Locally, we checked out their listed address with the BBB and found it has been a construction zone for years. We were able to track down an employee at another office on Calvert Street. But when we spotted that employee, he took off. An Advent spokesman tells ABC2 they stress the risk of their service to every client so they understand it’s a statistical long shot. Still, their company rep says they work vigorously on their clients’ behalf and that the vast majority of their clients have been extremely satisfied.
But don't count the Beeler’s into that group of satisfied customers. Megan Beeler says, "I think they're preying on peoples' dreams, really." And those dreams were ones these inventors in training were hoping to ride straight to the bank. As for achieving success in the inventor’s world, the FTC and the BBB both advise reaching out to community resources instead of invention promotion companies. They say colleges and business incubators have experts that can help you through the process for a low price, often for free. They also say before you ever sign on with an invention company, you should check their complaint record with the FTC, the BBB, the Attorney General’s Office and other inventors. And if you’ve had a bad experience with an invention promotion company, you should file complaints with all of those agencies.
