The two top legal experts in America on pyramid schemes, attorneys Douglas M. Brooks and Bruce Craig, carefully researched and evaluated the federal court cases that define and outlaw pyramid selling schemes under Section 5 of the Federal Trade Commission Act. They applied these cases to the widespread practices of MLMs today to evaluate MLM legality. This is the most in-depth and current evaluation of MLM legalty ever produced. The analysis has become especially important now that the FTC has launched an investigation into the legality of Herbalife. Since 1979, the legaltity and the financial consequences of MLM have not been examined. Now they are.
Pyramid expert Robert FitzPatrick contributed to the white paper with a statistical analysis of MLM economic performance and an analysis of the MLM business model to determine its financial value to consumers and society. The “white paper” is intended for attorneys, regulators, journalists, financial analysts and any interested consumers who must determine how the FTC investigation could affect not just Herbalife but all other MLMs, their shareholders and their distributors.
Read the report: THE PYRAMID SCHEME INDUSTRY: Examining Some Legal and Economic Aspects of Multi-Level Marketing, by Douglas M. Brooks, Robert L. Fitzpatrick, Bruce Craig