News

Soul of MLM Examined

In a new, hour-long interview, Jordan Harbinger (The Art of Charm) asked PSA President, Robert FitzPatrick to explore the deepest, darkest elements of MLM. The interview examines how MLMs capture people’s dreams, take over their lives, and insinuate into families and communities. Harbinger’s interest sprang from his work to aid men in discovering their own power in being more attractive...

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White Paper Examines MLM Legality and Economic Legitimacy

The two top legal experts in America on pyramid schemes, attorneys Douglas M. Brooks and Bruce Craig, carefully researched and evaluated the federal court cases that define and outlaw pyramid selling schemes under Section 5 of the Federal Trade Commission Act. They applied these cases to the widespread practices of MLMs today to evaluate MLM legality. This is the most in-depth and current...

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What’s the Matter with Multi-Level Marketing

From all over the world, the people who visit the Pyramid Scheme Alert website ask the same two specific questions more often than they do all others.  (1) What about this MLM (fill in the MLM name), legitimate or scam? and (2) Are all MLMs bogus income opportunities? We  address that first question about specific MLM with  audio and text resources. Thousands of people have downloaded them and...

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Top 5 Events of 2013 in Pyramid Schemes and Multi-level Marketing

A summary and evaluation of the top 5 events involving pyramid schemes and multi-level marketing, affecting millions of households, is the theme of latest Update newsletter published by Pyramid Scheme Alert. The free newsletter is now  also available online. Among the topics covered: Overview of the efforts to expose the truth about the MLM, Herbalife, now raging on Wall Street and Main Street....

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Wall Street Piracy and Pyramid Mania Merge: An Analyis

Main Street and Wall Street are usually viewed as two separate worlds. Main Street concerns ordinary Americans, the workplace, community life, and individual hopes and beliefs about work, faith, family, service, health and security. Wall Street, today more so than in the past, is recognized as  a market for financial products that no longer reflects the general state of the economy. Wall Street...

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Lyoness: Euro-MLM Looks Just Like a “Made in the USA” Pyramid Scheme

Pyramid Scheme Alert is receiving an increasing number of questions and complaints from people in the USA and other countries about the Austrian-based multi-level marketing scheme, Lyoness. An MLM scheme  founded abroad and coming into the USA, after already claiming millions of members, is a new development, a form of “blow-back.” Multi-Level Marketing (MLM) was invented in America....

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Herbalife CEO Wants Distributors to Lobby to Keep Business in the Dark

Herbalife wants its distributors to tell Congress not to look into Herbalife’s business.  In a letter asking Herbalife distributors to send letters to Congress for Herbalife,  CEO Michael Johnson tells the distributors that its in their interests for basic facts about the company to remain hidden from them!  The letter begins, “I have an urgent request for you to email your Member of...

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Regulators Asked to Investigate Herbalife

Pyramid Scheme Alert has sent an official request letter to  to the United States Federal Trade Commission’s  (FTC) Acting Director of the Consumer Protection Bureau asking that the agency initiate an investigation of the multi-level marketing company, Herbalife. The letter included a statistical analysis of the actual payments made by Herbalife to “Supervisors”, the upper...

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MLM Trade/Lobbying Group’s Defense of Herbalife Challenged

Pyramid Scheme Alert has called into question the basis for and the ethical standards of the Direct Selling Asssociation’s (DSA) defense of the multi-level marketing company, Herbalife. The DSA’ s president, Joseph Mariano, issued a statement in March that a request for an FTC investigation of Herbalife by the National Consumers League and various Wall Street financial companies...

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What’s Your Herbalife Story?

Herbalife is at the center of headline news stories right now. Major investors are calling Herbalife a “pyramid scheme” and a money trap. They report that 99% of all who sign up never make a profit. They say the products are overpriced and most people join up in the hopes of making money in the Herbalife pay plan, not just to get the products.  And they say that few Herbalife...

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