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Petition

for Consumer Protection Against Pyramid and Ponzi Fraud

In recent years, the Federal Trade Commission (FTC) and the Securities & Exchange Commission (SEC) have ignored, allowed or protected pyramid and Ponzi operators.

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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.

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Welcome to the New, Mobile Friendly Site!

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Mission Statement

In recent decades, pyramid schemes have become an insidious, pervasive and corrupting influence in the marketplace and community, causing financial and social harm on a global scale.

Since 1980 a new form of sales and marketing, called multi-level marketing or network marketing, has spread worldwide and spawned an explosion of pyramid sales schemes involving tens of millions of consumers. The line between legal forms of network marketing and fraudulent pyramid programs is a point of Read More…

Enough Is Enough. It’s Time for Action!

No more denial, shame or embarrassment. No more confusion. No more blaming the victim. No more resignation. And absolutely no more fear.

Pyramid Scheme Alert is the first consumer organization to confront the abuses and trickery of pyramid scheme perpetrators.

Pyramid Scheme Alert is a non-profit, privately supported (by memberships and donations), all-volunteer,
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Resources

Despite the volume of lies and hype flowing from multi-level marketing schemers there is more valid, research-based and whistle-blower information available today than ever before. The truth is emerging.

As in the cases of Enron, the lethal cigarette industry, bank and mortgage frauds and the Madoff ponzi scheme, the truth about multi-level marketing is taking time to emerge but the truth inevitably prevails. As the Links offered here show, the number of activists is growing. Major Read More…

What is this thing called multi-level marketing?

Consumer Report Now Available:

What is this Thing called Multi-Level Marketing?

This new article by Robert L. FitzPatrick is an economic “portrait” of multi-level marketing (MLM) in the USA. The report has compiled and analyzed the data on three of the oldest and largest MLM companies, Amway, Herbalife and Nu Skin in a readable and understandable way to paint a recognizable picture.  Together, these three constitute 10% of the entire MLM operations in America and serve as representatives of all others. About 1.5 million Americans are signed up in them each year. Most quit within a year.  The report shows shocking loss rates among participants and an extreme transfer of money to the 1% at the top. The study also examines the potential for “retail” sales by distributors, which turn out to be non-existent. Finally, the report examines  the financial chances of success  of a new recruit joining any of the three today.
If you have an interest in seeing this report, contact us.