Federal Court Decision May Allow Restitution to Some Victims of MLM, YTB
A three judge federal panel has overturned an earlier ruling by a federal judge, thus giving new life to a class action lawsuit against the multi-level marketing scheme, Your Travel Biz.com (YTB). The class action lawsuit stated, “The defendant corporations have taken over half a billion dollars from their unsophisticated customers, selling them on the dream of cheap travel and million...
Read MoreFTC Neglect and Corruption
Consumer Report Now Available: The Main Street Bubble The new report from Pyramid Scheme Alert, “The Main Street Bubble: A Whistle Blower’s Guide to Business Opportunity Fraud; How the FTC has Ignored and Now Protects It” is now available to the public at no charge. If you have an interest in seeing this report, email PSA. Include the words “Main Street Bubble” in...
Read MoreCanadian Police Bring Criminal Fraud Charges against MLM, Business in Motion
Royal Canadian Mounted Police (RCMP) in the province of Manitoba in central Canada have brought criminal fraud charges against a prominent multi-level marketing company, its president and 12 of its promoters. The prosecution is a clear warning to any consumer about the risks of joining or recruiting for a multi-level marketing company. Previous lack of prosecution or claims of legality by the...
Read MoreSeven Gifting Scheme Women Charged with Felonies — Millions More at Large?
A Michigan newspaper reports that “seven Newaygo County women have been arraigned… on felony charges in connection with a pyramid scheme targeting women.” The article states that the women are facing charges of pyramid chain promotions, which carries up to a seven-year sentence and a $10,000 fine. These are not necessarily ringleaders, it reports. Each one participated in a...
Read MoreAtlanta Newspaper Examines MLM Scheme, Stream Energy/Ignite
In a feature report, a major metropolitan newspaper, the Atlanta Journal-Constitution, examined the MLM scheme, Stream Energy/Ignite, focusing on the question of whether the company is operating a disguised pyramid scheme. Stream is a reseller of utility services, gas and electricity, and operates in several states. Ignite is the multi-level marketing sales division. The company uses a...
Read MoreMLM, Fortune High Tech, Reportedly Investigated by NC Attorney General
The MLM scheme, Fortune High Tech Marketing (FHTM), is now the target of an investigation by the North Carolina Attorney Generals Office, according to an article in the Wilmington, NC-based newspaper, Star News. The article notes that this company has already been prosecuted by state regulators in North Dakota and Montana and that it faces a class action lawsuit brought by consumers who accuse it...
Read MoreConsumer Class Action Suit Against MLM, Stream/Ignite, May Go Forward
Once again, a court has ruled against an MLM’s “binding arbitration” contract as a shield against consumer lawsuits. The recent ruling against the MLM, Stream/Ignite, may enable a current consumer lawsuit to proceed. Like all other MLMs, Stream/Ignite used the arbitration clause to argue that consumer victims had no legal right to sue in court. October 5, 2010, the United...
Read MoreAnalysis: Amway Accused of Fraud; Pays $150 Million; Where’s the FTC and DOJ?
Amway is the largest, oldest and best known representative of “multi-level marketing” (MLM). It is the most prominent member of the Direct Selling Association. This icon of “direct selling” just announced that it has agreed to pay restitution to consumers and reform costs estimated at over $150 million. The payments are in response to consumer accusations that...
Read MoreLike Donald Trump’s Hair, ACN May Not Be What It Appears To Be
State regulators and television news media have recently shined a light on what many people thought was one of America’s fastest growing multi-level marketing companies, ACN, based in North Carolina. ACN’s great claims to fame and legitimacy have been its reputed fast growth and its television endorsements by celebrity, Donald Trump. But new developments and revelations are uncovering...
Read MoreAnalysis: Montana/ACN Settlement Displays the MLM Loophole, Once Again
The state of Montana played David against the multi-level marketing (MLM) Goliath, ACN, when it recently accused that company of operating a pyramid scheme. ACN’s boastful promoter is the millionaire, Donald Trump, and the scheme’s product, a video phone, is promoted on Trump’s national TV show. ACN claims to have 200,000 sales reps worldwide. Montana is a state with less a...
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