News

Herbalife among MLMs Exposed in new Russian Documentary

Herbalife is spotlighted among several multi-level marketing (MLM) companies that are debunked in a ground-breaking news documentary on Channel One in Russia, the main television station of that country. The show is currently only in the Russian language but an English-subtitle version will be released soon. See  http://www.1tv.ru/sprojects_edition/si5972/fi34455 The show exposed various MLMs...

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The True History and Actual Identity of MLM

 One of the the greatest obstacles – perhaps the most important one – to law enforcement of Main Street pyramids is the disguise of pyramid schemes as “direct selling” enterprises that offer a viable “income opportunity” to large numbers of people . A recent essay argues that not only are MLMs not direct selling (few MLMers have any customers; virtually no one makes a...

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News Media Reports on MLM Increasing and Getting to the Truth

After years of a near-blackout of investigative or insightful media coverage of multi-level marketing (MLM), a shift appears to be occurring. There are more reports and the quality is far better. At the top of the list of recent reports on MLM is the investigative series by Aljazeera America. Aljazeera America series on MLM, focusing on Amway, Vemma, and Herbalife, and includes an editorial...

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Visalus Sued for Racketeering, Pyramid Fraud

The text of a new lawsuit filed against the MLM, Visalus, paints a vivid picture complete with video links and color photos. The suit was filed by the law firms, Sommers Schwartz in Southfield Michigan, Prebeg, Faucett & Abbott in Houston  and Wexler Wallace in Chicago, which are also suing the “engergy” MLM, Stream/Ignite. The  text of the lawsuit declares...

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Specter of Illegality Stalks Multi-level Marketing

From around the world, the charge that multi-level marketing is illegal is being sounded. Consumer activists have long charged that “MLM” is not a true business based on sales to the public but a pyramid scam based on “endless chain” recruiting fueled by “distributors” making purchases to qualify for recruiting rewards. Some MLMs have more retail sales than...

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Why Wall Street Can’t Understand Multi-Level Marketing

How is it possible that some of Wall Street’s brightest people say they cannot figure out whether Herbalife and other MLMs are pyramid schemes or not? Why do so many journalists become flummoxed when delving into MLM pay plans, contracts, and “income disclosures.” And how is that millions of ordinary people lose substantial money in MLM yet many of them still proclaim...

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The Shocking Realities of MLM Injuries

On May 2, an extraordinary event was held in New York City in which courageous citizens who had been injured at the hands of the MLM, Herbalife and its recruiters, came forth publicly and told their MLM stories. This is a voice that has not been quiet, but, but rather has been ignored or suppressed for decades until now. The stories were told in a compelling documentary and then elaborated in...

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Fortune High Tech Rests in Peace while Zombie MLMs Stalk the Public

by Robert L. FitzPatrick, Pres. Pyramid Scheme Alert The popular and fast-growing multi-level marketing company, Fortune High Tech Marketing (FHTM), is now officially dead. A few of its top leaders are banned “for life” from participating in MLM companies and were required by the FTC to pay back millions of their ill-gotten gain. “In recent years, the scheme targeted Spanish-speaking and...

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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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