Posts Tagged ‘MLM vs. Pyramid Schemes’
Problems The FTC Sees In “Pay To Play” Commission Plan
The FTC’s primary cause of action alleges that business practices constitute unfair and deceptive trade practices and are therefore a violation of Section 5 of the FTC Act. The FTC is ultimately seeking to prove that the program is a pyramid because all pyramids are inherently deceptive. The fundamental element of a pyramid is that…
Read MoreWhat is a pyramid scheme?
Do you remember the invitations you have received to join a multilevel marketing company? What thoughts did you have when you evaluated if the opportunity as a pyramid scheme vs a legitimate direct selling company? Unfortunately, there is not a clear universal definition of a pyramid. Instead there are general guidelines that are accepted by…
Read MoreThe telltale signs of a pyramid scheme
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 is operating a pyramid scheme: • Your income is based mainly on…
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