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...
“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.
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...
“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...
Consumer Alert: Beware of Scam Using Initials, F.T.C.
Consumers should be on the lookout for an entrapping and misleading document circulating and being widely referenced on the Internet entitled, "Business Guidance Concerning Multi-Level Marketing." It purports to offer guidelines for legal and legitimate "multi-level...
“Anti”-Pyramid Scheme Bill and “Alternative Legality”
Update: The proposed law promoted by the Direct Selling Association to protect "MLM" companies from future regulation, criminal prosecution and class action lawsuits was reintroduced in 2017 with changes, though the intent is the same. It is now called HR 3409. The...
Sign 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...
Why MLM Is Invisible, Part II: False History and Identity
In the previous (Part I) of this series, it was seen how the fictionalized language that was invented by MLM promoters serves to prevent critical analysis. Terms, which have nothing to do with how MLM actually operates, serve as protective coating, preventing a...
Why MLM Is Invisible, Part 1: False Language
Normally, a social or economic phenomenon, in which as many as 15 million American households participate year after year and which involves intrusive and sometimes disruptive personal and social interactions in addition to potentially thousands of dollars of lost...
Deception and Delusion: How Pyramid Schemes Maintain the “Direct Selling” Disguise
According to the MLM companies, Herbalife, Nu Skin and Amway, and others, the great majority of people who sign sales contracts, join as “salespeople” and buy sales kits have absolutely no interest in being salespeople or in making any money at all in those...
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