May 12, 2013 | Economics / Financial, False Profits, Individual / Social Impact
After William Ackman of the hedge fund, Pershing Square Capital, made his now famous slide presentation in which he charged that Herbalife is an illegal pyramid scheme that should be prosecuted by the FTC and the SEC, the debate soon shifted away from Herbalife itself...
Feb 21, 2012 | Ethics, False Profits, Individual / Social Impact
Don’t Even Say It! There are two taboo terms in the world of multi-level marketing (MLM). One is “pyramid scheme”. The other, which is even more vehemently denied, is “cult”. Many people understand cults to be dangerous restrictions on freedom and individuality. The...
Oct 28, 2011 | Economics / Financial, Individual / Social Impact
MLM Hopeful: I just read your article, “The 10 Big Lies of Multi-Level Marketing.” I was wondering when you wrote it and if you still stand by it? FitzPatrick: Are you asking me about something in particular? MLM Hopeful: Well, I’ve heard that Amway is now a $10...
Nov 21, 2010 | Economics / Financial, Ethics, False Profits, Individual / Social Impact, Legalities and Laws, Pyramid Scheme Politics
The settlement of the consumer class action suit in which, responding to criminal fraud charges, Amway has agreed to pay $150 million in restitution raises, again, the unavoidable questions: What, if anything, is true and legitimate about Amway? How deep is its...
Jul 30, 2010 | False Profits, Individual / Social Impact, PSA in the Media
Since the book, False Profits, was published in 1998, scores of journalists, including CBS 60 Minutes, Wall Street Journal, London Times, BBC and many daily newspapers, each have conducted interviews and presented news stories, feature articles or radio and television...
Oct 26, 2009 | Economics / Financial, False Profits, Individual / Social Impact
Day after day after day, Pyramid Scheme Alert receives consumer inquiries about various multi-level marketing schemes, and the question is always the same: “What about this one?” In the last few months alone, here are just some of the schemes that consumers asked...