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.
Recent Articles
The Agony and the Angst: Wall Street Investors Ponder FTC “Enforcement” on MLMs
Politics will determine FTC Law Enforcement, not rule of law.
Millions of “Direct Sellers” Disappear!
At least 12 million Americans that had been classified and counted as “direct sellers,” aka MLM, officially disappeared from the rolls.
Is Public Perception of MLM as a Cultic Scam Reaching a Tipping Point?
The reality that for years only a few independent and courageous writers, bloggers, attorneys, whistle blowers and web publishers dared to say and for which they were often sued, ridiculed, or physically threatened is now being said out loud by institutional voices – journalists, culture critics, tv and movie producers and academics.
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
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.
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...