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…
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.
“Ponzinomics” Explains How and Why the FTC Protects Multi-Level Marketing
A new book, soon to be released by PSA President Robert L. FitzPatrick, digs into how and why the FTC has not taken decisive action against multi-level marketing companies. Entitled, PONZINOMICS, the FTC's Protection of Multi-Level Markeing, the 100+ page book is...
read more“Anti”-Pyramid Scheme Bill and “Alternative Legality”
The political landscape concerning pyramid selling schemes has dramatically changed with the election of Donald Trump. The changes include a MLM-connected president and Cabinet who will likely call off the regulators. A recent Slate article documents Trump’s and his...
read moreSign of What’s Coming in Pyramid Scheme Law Enforcement at the FTC
Perhaps the clearest and most direct indicator of what is coming in America for pyramid scheme law enforcement and consumer protection occurred in recent week before the inauguration of president-elect, Donald Trump. Regulation and consumer protection are poised for a...
read moreDonald Trump, MLM and Pyramid Schemes, Year-End 2016 Update
Pyramid Scheme Alert's Year-end Update report has been published. It is entitled, "Donald Trump, MLM and Pyramid Scheme Politics," covering how the presidential and congressional election may affect law enforcement and consumer protection regarding multi-level...
read moreJohn Oliver Dares to Say It: “MLM Is a Pyramid Scheme”
The popular and trend-setting HBO show, Last Week Tonight with John Oliver took direct aim at "multi-level marketing". In a remarkable and hilarious 30-minute segment, satirist John Oliver goes to the heart of MLM and tells the dead-honest truth, the one that the...
read moreMLM Lobbyists Pushing the Legalization of Recruiting Scams as “Direct Selling”
The latest “UPDATE” from Pyramid Scheme Alert is a special consumer alert to HR 5230, the proposed federal law that will effectively prevent all further FTC prosecutions of “multi-level marketing” companies. The bill is designed to legalize marketing practices that...
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