Conflicts of Interest May Influence Better Business Bureau’s Arguments about MLM Scheme, IJango, which it Warns Is a "Pyramid Scheme"

September, 2009

The Better Business Bureau is warning consumers that the new multi-level marketing scheme, IJango, may be a pyramid scheme. IJango founders have ties to a previous, now bankrupt, MLM, Excel Communications.

Why is the BBB targeting this one start-up? Is it engaged in practices all that different from hundreds of other MLMs? No, not really. Better Business Bureaus seldom identify multi-level marketing companies as pyramid schemes. The Dallas BBB was sued in 2006 for questioning a MLM.

But there is much more to this story, including conflicts of interest at the BBB and misleading arguments about how consumers should identify harmful pyramid selling schemes. Read More