November 30, 2001
Pre-Paid Legal Services (PPLS) has agreed to cease using prohibited income statements, to pay fines and legal costs, and to reimburse consumers who had been misled by the false earnings claims. Wyoming's Attorney General war ned PPLS that the income claims were prohibited under the state's Multilevel and Pyramid Distributorship Act, but the claims continued. The company has entered into a formal "Assurance of Voluntary Compliance."
The Attorney General's office recommends that consumers avoid multi-level marketing (MLM) programs that
- emphasize recruiting
- claim to make money through continued downline growth
- claim to sell "miracle" products or emphasize enormous incomes
- require you to pay a fee to participate
- sign a contract at an "opportunity" meeting or similar high-pressure situation