A 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...
Read MoreTexas AG Forces MLM, Fortune High Tech Marketing, to Pay Refunds
Fortune High Tech Marketing (FHTM), the darling of the multi-level marketing industry when it was launched by former recruiters of the bankrupt MLM, Excel Communications, has been hit by regulators in yet another state. Texas consumers who were involved in the scheme may be entitled to refunds, totalling more than $1.3 million. The company has also agreed to pay hundreds of thousands of dollars...
Read MoreFTC: Line between MLM and Pyramid Fraud too Complex to Regulate
The staff of the Federal Trade Commission (FTC) has reversed its earlier position on the need to regulate multi-level marketing and has now recommended exempting all MLMs from a proposed “business opportunity rule.” This means MLMs will have no rules requiring disclosure of income averages, recruiting requirements, saturation, failure rates, or business costs when recruiters lure...
Read MoreHyped by Donald Trump, ACN Video Phone Business May Be Collapsing
Donald Trump tells Americans that it is a technology breakthrough, a wave of the future; everybody will own one; better get in now! He is personally endorsing and hyping the “revolutionary IRIS V Video Phone”, the flagship product and the new icon of the multi-level marketing company, ACN, for which Donald Trump serves as pitchman-in-chief. He trumpets the video phone on Celebrity...
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 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 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...
Read MoreFREE REPORT
"What About This One?"
How do you tell the difference between legitimate direct selling and pyramid recruitment schemes?
Many -- too many -- are financial traps, but which ones?
This free audio and written report provides the tools and facts you need to spot the scams. Get it now.
