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.
News Media Keep Taking the Bait of MLM “Products”
Vice News and Samantha Bee avoided MLM’s financial and political realities in favor of criticizing MLM products
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Advocare’s Claim, “FTC-Made-Us-Quit-MLM,” is Suspicious
Advocare’s claim that the FTC is forcing it to abandon MLM is a suspicious claim. Other factors, including cash-flow, family disputes and recruiting collapse are more likely as primary drivers.
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The Importance and Futility of Class Action Lawsuits against MLMs
Recently, yet another class action lawsuit has been filed against a "multi-level marketing" company, in this instance, "Young Living Essential Oils". This Utah-based MLM company (are they all in Utah?) is a digital reproduction of so many other MLMs, that are...
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“News” Articles on MLM Uphold Myths and Lies, Mislead
MLM-genre articles contribute to why so many people can no longer distinguish valid journalism from PR, propaganda, fake news and deceptive marketing. Presented as feature news stories, consumer protection pieces, cultural trend alerts or, occasionally, as business news, nearly all the articles could seemingly have been written by the same author. They dutifully repeat the talking points concocted by spin masters at the Direct Selling Association and unwittingly repeated millions of times over by MLM recruiters. They include non-fact-checked profiles of “success” and incredible income claims without qualification. They reinforce the message that if you lost money in MLM, you’re probably just a loser.
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Trump’s “MLM” Experience Laid Foundation for his Politics
"Calling a person a "liar" used to be one of the worst things you could say about somebody personally," a friend recently commented. He was referring, ruefully, to the president of the United States being routinely characterized as a liar, and his well documented...
read more“Newspeak” Is Now Official Policy at FTC on MLM
After publishing a recent "Update" newsletter for Pyramid Scheme Alert, I was sent a correction by one reader to the statement that the FTC had not prosecuted any "MLMs" in the last two years. There had been at least two in early 2018, it was pointed out. It is true...
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