Pyramid Schemes

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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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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International Coalition of Consumer Advocates

White Paper “THE PYRAMID SCHEME INDUSTRY: Examining Some Legal and Economic Aspects of Multi-Level Marketing” by Douglas M. Brooks, Robert L. Fitzpatrick and Bruce Craig   Official Petition Letter to the Federal Trade Commision by International Coalition of Consumer Adocates   Signatories to Official Petition Letter to the Federal Trade Commission by International Coalition...

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Are “All” MLMs Scams?

by Robert L. FitzPatrick, Pres. Pyramid Scheme Alert Could “all” MLMs be scams, financial traps in which less than 1% ever make money? Pyramid Scheme Alert is constantly asked this question, along with questions about specific MLM, (What About This One?) Pyramid Scheme Alert  has not examined every single MLM but, among the hundreds we have examined, we have not found one yet that...

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Income Disclosures of Herbalife, Nu Skin and Amway 2012

Herbalife Nu Skin...

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Visalus: Red Flags and News Items of Interest

MLM, Visalus, IPO Pulled Off the Market, Questions Raised The MLM, Visalus Sciences, that also sells diet products and is a subsidiary of the MLM, Blyth Industry (BTH), suddenly began to show 500% growth, caused largely by a massive recruitment drive based on promises of income and that drew thousands of income-seeking consumers from other MLM companies. Leveraging its extraordinary revenue...

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Lyoness: Red Flags and News Items of Interest

A European-based website (in English) that offers news and analysis on Lyoness A video news presentation from Austria with English sub-titles. It is thorough. Worth the time to watch. Straightforward and insightful analysis, the Blog, “MLM The American Dream Made Nightmare”. See the Wikipedia description of Lyoness. Go the “controversy” and “legality”...

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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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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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