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MLM vs Pyramid Scheme

  • April 16, 2018

    Boosting transparency to save direct sales

    Podcast episode 24

    Spencer Reese joins us again to talk about the current legal climate for MLM companies. He talks to us about the evolving definition of inventory loading, the dangers of illegal income claims, and the surprising absence of pyramid scheme allegations in recent FTC actions against direct sellers. Spence... Read more ›

  • April 9, 2018

    How to avoid joining a scam

    Tips for differentiating legitimate direct sellers from pyramid schemes

    First-time MLM distributors often wonder if the company they’re thinking about joining might be a scam. Unfortunately, some companies claiming to be legitimate MLMs are pyramid schemes. But many MLMs are legitimate businesses. So how can you tell the good from the bad? It’s not a bad idea to Google the... Read more ›

  • June 17, 2014

    The telltale signs of a pyramid scheme

    Consumer Education Specialist, FTC What’s the difference between a multilevel marketing program and a pyramid scheme? Pyramid schemes are illegal. If the money you earn is based on your sales to the public, the company may be a legitimate multilevel marketing plan. Here are some signs that the company... Read more ›