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...
Read MoreWhat’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...
Read MoreHerbalife: Red Flags and News Items of Interest
Major Hedge Fund Manager Charges that Herbalife Is an Illegal Pyramid Scheme; (this website offers a rich resource of information about charges and evidence of deception at Herbalife). News Media Interviews with Hedge Fund Manager on Herbalife Pyramid Charges: CNBC Bloomberg More Signs of Herbalife Pyramid Scheme Cited by Pyramid Scheme Alert The Case of Herbalife’s...
Read MoreJudge: Whistle Blower Can Call Nu Skin a Pyramid Scheme
A state judge in Utah modified an earlier decision and now has ruled that a prominent Nu Skin whistle-blower is legally allowed to call that company an illegal pyramid scheme, based on the whistle-blower’s analysis, direct experience and knowledge of the Nu Skin business. The ruling is a victory for free speech and a setback for Nu Skin. An earlier court ruling had imposed a prohibition on...
Read MoreNu Skin: Red Flags and News Items of Interest
Nu Skin Facing Whistle Blower Why Did Nu Skin’s Stock Drop? Wall Street Asking Questions about Nu Skin and other Publicly Traded MLMs Judge: Whistle Blower Can Call Nu Skin a Pyramid...
Read MoreNu Skin Facing the Ultimate Whistle-Blower
According to investigative journalists and corporate intelligence professionals, multi-level marketing (MLM) companies are unique in the business world for extreme secrecy, a “need to know only” communication network, and a strict code of silence toward outsiders. Ex-employees and ex-distributors seldom have useful information, often admitting they know nothing about the...
Read MoreIs Wall Street Waking Up To MLM’s Flawed Business Model?
A highly unusual event occurred in May, 2012 that drastically affected businesses and individuals who invest in the stocks of multi-level marketing (MLM) companies. A hedge fund manager – who is famous for rigorous research, uncanny insight into future trends and for selling ”short” the companies that he thinks are unsustainable – publicly asked a few pointed questions about the...
Read MoreHalf of Amway’s Products Are Retailed. Really! Plus Other Wacky Numbers
In a recent video interview with Amway executives, Doug DeVos and Steve Van Andel, a Wall Street Journal reporter asked them a probing and revealing question. In fact, before the interview, the reporter for the Wall Street Journal emailed Pyramid Scheme Alert to ask for questions to pose to Amway’s top executives. The question that Pyramid Scheme Alert recommended and that was asked was,...
Read MoreNewspaper Series Explores Cult Connection to MLM, NXIVM
The lethal combination of cult and pyramid in a multi-level marketing company was vividly explored in a recent newspaper series on the multi-level marketing company, NXIVM (pronounced like the acid reflux “purple” pill). The four-part series in the Albany Times Union by James M. Odato and Jennifer Gish chronicles lawsuits, accusations of sexual abuse of female members, legal harassment...
Read MoreA European Court Rules: “Herbalife Is an Illegal Pyramid Scheme”
There are two icons of MLM that represent all the others of that “industry”. They are among the oldest and largest MLMs, and they have spread to most other countries worldwide. One is Amway. The other is Herbalife. Herbalife has just been ruled an illegal pyramid scheme by a court in Belgium. A case had been brought against Herbalife in Belgium by a non-profit consumer protection...
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