MLM

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...

Read More

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...

Read More

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...

Read More

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...

Read More

Income Disclosures of Herbalife, Nu Skin and Amway 2012

Herbalife Nu Skin...

Read More

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...

Read More

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 More

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...

Read More

Judge: 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 More

Nu 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 More

Bad Behavior has blocked 804 access attempts in the last 7 days.