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
FTC Report on MLM “Earnings Claims” Rule Confirms Views of Dr. Lasdwun N. Luzes, Legendary MLM Economist
The recent report by staff of the FTC Consumer Protection Bureau related to a proposed rule on MLM “Earnings Claims” confirms the economic analysis of Dr. Lasdwun N. Luzes that such a rule would be useless and unworkable. Dr. Luzes is the author of the ground-breaking booklet, In Defense of the Pyramid Scheme.
“MLM Is Legal” Is the Heart of the Big Lie
he Big Lie is: “MLM is Legal.” This Big Lie is promoted by MLMs, for obvious reasons, but it is also spread, incredibly, within “anti-MLM” too.
When anti-MLMers repeat it, it diminishes all valid revelations.
Conference of Mice Skirts “Tray” Deception
Reports of mice losing lives or limbs in what are called "mouse trays" containing delicious food had increased to alarming levels. It became the subject of intense controversy, leading to a conference of concerned mice. The mice have been told by other trusted mice...
The Plainest Truth of MLM is the Most Avoided
If “Selling the Dream” were about mouse traps and written to help mice, the book would offer a lot of interesting information about various cheeses and other baits, their quality, taste, color, etc. It would tell the mice some colorful stories about the trap’s inventors. But it would avoid telling the mice right from the start, clearly, and forcefully that the cheese sits on a malevolent device designed to break their little necks! It would not definitively explain that the device is a murderous trap, not a plate of free food, as it is disguised.
When Will US Media Report Amway Is Charged with Ponzi and Money Laundering by Indian Government?
https://youtu.be/Dm4KjDeK1iw?si=YdBptbx2Zc6Q05EL https://youtu.be/H-DvRrwfTkY?si=_EWE7Lm2_zeSIDon India's Money Laundering Case against Amway Breaks New Ground in Enforcement and Revealing MLM
The Futility of Private MLM Lawsuits and FTC “Cases”
This past week, a civil lawsuit in the name of consumers harmed by MLMs lost in court. That suit charged deception by the most famous of all MLM promoters, Donald Trump, over a 10-year span, documented on national television, multiple speaking engagements and online...