Pyramid Schemes

Saturation Reality and the Myth of MLM “Growth”

Over seven years ago, the report, “The Myth of MLM Income Opportunity” was published  by Robert L. FitzPatrick and aimed at consumers being solicited to join MLMs that promised “unlimited income opportunity.”  Using data from 11 MLMs that published “income disclosures”, the report showed that less than 1% of all MLM participants ever earn a profit, according...

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ACN: Red Flags and News Items of Interest

Read this First “ACN Pyramid Scheme“: A consumer activist website with comprehensive overview of facts, claims, and relevant issues on ACN. The site does not claim ACN is “illegal” but calls it a “scam.” Much valuable information for anyone involved or considering getting involved in ACN. Montana vs. ACN, a David and Goliath Battle: Article about the 2010...

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Finally, a Film on the Truth about Multi-Level Marketing: You Can Help!

After nearly three decades of operating in the shadows, “multi-level marketing” has recently become the focus of a feature investigative article in Rolling Stone magazine, the subject of the popular NPR radio documentary show, This American Life, a full length television documentary in Russia, and MLM seems to be in the business media every day. When the media looks closely the...

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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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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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