Generated by All in One SEO v5.0.0.1, this is an llms.txt file, used by LLMs to index the site. # Pyramid Scheme Alert The first international organization to expose, study and prevent pyramid schemes. ## Sitemaps - [XML Sitemap](https://www.pyramidschemealert.org/sitemap.xml): Contains all public & indexable URLs for this website. ## Posts - [Why the Claim, "MLM Is Legal!" Is False and Pointless](https://www.pyramidschemealert.org/why-the-claim-mlm-is-legal-is-false-and-pointless/) - by Robert L. FitzPatrick In every news article, interview, documentary and all books about MLM (except PONZINOMICS), there will be a statement asserting or conceding that "MLM is legal." Sometimes MLM is called "perfectly legal" or there will be a statement that "courts have ruled" or "the Federal Trade Commission (FTC) declares" that MLM is by Robert L. FitzPatrick In every news article, interview, documentary and all books about MLM (except PONZINOMICS), there will be a statement asserting or conceding that "MLM is legal." Sometimes MLM is called "perfectly legal" or there will be a statement that "courts have ruled" or "the Federal Trade Commission (FTC) declares" that MLM is - [How a "Vocabulary of Fraud" Protects MLM and Disempowers Anti-MLM](https://www.pyramidschemealert.org/how-a-vocabulary-of-fraud-protects-mlm-and-disempowers-anti-mlm/) - Robert L. FitzPatrick, June 2026 Reflecting on my decades of work to expose multi-level marketing (MLM), there were several turning point realizations, as others have also noted in their own journeys of discovery. The first came quickly — that MLM is not at all "direct selling" but a carefully constructed pyramid scheme, designed to cause Multi-Level Marketing is protected by its own vocabulary of fraud, which hides the reality of fraud and intentional harm. Using the vocabulary of fraud disempowers anti-MLM and makes understanding the fraud impossible. - [Crypto and Prediction Markets — Legacy of MLM](https://www.pyramidschemealert.org/crypto-and-prediction-markets-legacy-of-mlm/) - by Robert L. FitzPatrick Remembering I am one of the few people in the world that for more than 30 years consistently examined and sought to expose the lie that is called "multi-level marketing" (MLM). I am not alone, but part of a tiny cadre of truth-tellers, nearly all of whom have been sued and - [Multi-Level Marketing Identified as "Cult" in New Book from Major Publisher](https://www.pyramidschemealert.org/multi-level-marketing-identified-as-cult-in-new-book-from-major-publisher/) - [et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”] The new book, CULTS LIKE US by Jane Borden, published by Simon & Schuster, identifies multi-level marketing (MLM) as an American cult movement that employs coercive mind control and exhibits all other dangerous traits associated with destructive cults. The book affirms the analysis of PONZINOMICS that MLM is CULTS LIKE US is the first Bfrom a major publisher to specifically identify multi-level marketing as part of the self-destructive cultism sweeping across America. - [Good-bye, F.T.C. ](https://www.pyramidschemealert.org/good-bye-f-t-c/) - Robert FitzPatrick Robert L. FitzPatrick Since the mid-1990’s when the voices of “anti-MLM” started to grow, citizens who were injured, some irreparably, by multi-level marketing (MLM) turned to the US Federal Trade Commission (FTC) for truth, justice and protection. Still today, FTC is treated by anti-MLM as the last best hope. FTC officials are honored guests and speakers at anti-MLM The FTC’s 30-year relationship with MLM victioms has been dishonest, disappointing, and dysfunctional. Since the 1980s, the FTC has been on a downward, though sometimes uneven, trajectory. It descended through stages of political compromise and pressure, to unethical conflicts of interest, to gross corruption. - [Quiz: How Many MLMs Are There? ](https://www.pyramidschemealert.org/quiz-how-many-mlms-are-there/) - Many people move from one MLM to another thinking they are different, when in fact they're all the same. | Robert L. Fitzpatrick - [The Plainest Truth of MLM is the Most Avoided](https://www.pyramidschemealert.org/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. | Robert L. Fitzpatrick - [Institutional Support for Multi-Level Marketing in America Is Cracking](https://www.pyramidschemealert.org/institutional-support-for-multi-level-marketing-in-america-is-cracking/) - The consequences of media and institutional support for MLM are getting worse, and MLM's ill-gotten money is being used for an extremist political agenda. - [MLM Champion, Dr. Lasdwun N. Luzes, Condemns Labeling MLM as “Cult”](https://www.pyramidschemealert.org/mlm-champion-dr-lasdwun-n-luzes-condemns-labeling-mlm-as-cult/) - (Unverified Report) The country’s most ardent advocate for multi-level marketing, Dr. Lasdwun N. Luzes, has condemned a recently published slide presentation on YouTube by Robert FitzPatrick that identifies and defines multi-level marketing (MLM) as “the world’s largest and least examined cult movement.” Dr. Lasdwun N. Luzes is a sought-after consultant to MLM companies and traders of - [FTC Report on MLM "Earnings Claims" Rule Confirms Views of Dr. Lasdwun N. Luzes, Legendary MLM Economist](https://www.pyramidschemealert.org/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](https://www.pyramidschemealert.org/mlm-is-legal-is-the-heart-of-the-big-lie/) - Fitzpatrick 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. The 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. - [Conference of Mice Skirts "Tray" Deception](https://www.pyramidschemealert.org/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 that the trays offer a unique opportunity to obtain nutritious food - [Action Alert: Help Protect Consumers](https://www.pyramidschemealert.org/action-alert-help-protect-consumers/) - [et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]Help protect consumers in your state! Volunteer to be a PSA watchdog in your state and help stop the deceptive lobbying by MLM schemes to legalize pyramid sales scams. Contact us for more information. [/et_pb_text][/et_pb_column] [/et_pb_row] [/et_pb_section] - [Petition](https://www.pyramidschemealert.org/petition/) - for Consumer Protection Against Pyramid and Ponzi Fraud In recent years, the Federal Trade Commission (FTC) and the Securities & Exchange Commission (SEC) have ignored, allowed or protected pyramid and Ponzi operators.The Bernard Madoff scandal is part of a larger pattern of neglect and failure to enforce laws and protect consumers from Ponzi and pyramid - [What's Your Herbalife Story?](https://www.pyramidschemealert.org/whats-your-herbalife-story/) - Herbalife is at the center of headline news stories right now. Major investors are calling Herbalife a "pyramid scheme" and a money trap. They report that 99% of all who sign up never make a profit. They say the products are overpriced and most people join up in the hopes of making money in the - [Congress Members Cautioned about Pyramid Prosecutions, Losses, Deception and "Endless Chain"](https://www.pyramidschemealert.org/were-congress-members-misled-about-difference-between-direct-selling-and-mlm/) - The following members of the House of Representatives Joined a "Direct Selling" Caucus Organized by the Direct Selling Association, the Lobbyist for "Multi-Level Marketing" A public letter has been sent to each member from International Coalition of Consumer Advocates alerting them about MLM pyramid prosecutions, lawsuits, and federal investigations involving members of the Direct Selling Association. It urges - [When Will US Media Report Amway Is Charged with Ponzi and Money Laundering by Indian Government?](https://www.pyramidschemealert.org/when-will-us-media-report-amway-is-charged-with-ponzi-and-money-laundering-by-indian-government/) - India's Money Laundering Case against Amway Breaks New Ground in Enforcement and Revealing MLM - [The Futility of Private MLM Lawsuits and FTC “Cases”](https://www.pyramidschemealert.org/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 commercials. After almost 5-years of litigation, the evidence proved insufficient. The - [FTC JOINS MLM'S "LEGIONS OF LOSERS"](https://www.pyramidschemealert.org/ftc-joins-mlms-legions-of-losers/) - Robert Robert FitzPatrick Under the subtitle “Legions of Losers”, the first chapter of PONZINOMICS begins: “Those who encounter enterprises such as Amway, Nu Skin, Mary Kay, Avon, Usana, and hundreds of others, have a universal experience: loss. The failure of millions each year is its calculated product on which MLM gains its returns and, therefore, the true story of MLM The FTC’s defeat was of its own making. The case avoided reality at a level on par with the MLM's fantastical claims. - [The Surreal Experience of Visiting Amway World Headquarters](https://www.pyramidschemealert.org/the-surreal-experience-of-visiting-amway-world-headquarters/) - by Robert L. FitzPatrick, Author of PONZINOMICS, the Untold Story of Multi-Level Marketing July, 2023 From the outside or if you just drive by, the enormous facility in Ada Michigan would look like any large corporate center. There is a huge globe on display by the road and a row of national flags, signifying the - [What MLM Is, and What To Do About It](https://www.pyramidschemealert.org/what-mlm-is-and-what-to-do-about-it/) - #1: MLM Is Not “Business”; MLM Is Not “Direct Selling” MLM contracts are never voluntary. Necessary information is always withheld. A fair exchange of value does not occur. The MLM financial proposition is inherently deceptive and harmful. Sustained, profitable retailing – direct selling – is non-existent and impossible under "MLM." #2: The Use of Business - [The Fraudulence of “Fake It Till You Make It”](https://www.pyramidschemealert.org/the-fraudulence-of-fake-it-till-you-make-it/) - by Robert L. FitzPatrick I was quoted and a link to my book, False Profits, was included in a recent article in the Washington Post that probed the aphorism, “Fake It Till You Make It”, which now pervades our culture as a recommended strategy for success. Where did this slogan come from, author and WP opinion columnist, Helaine Olen asked, - [What's Driving and Pulling Millions into MLM, despite the Known Facts?](https://www.pyramidschemealert.org/whats-driving-and-pulling-millions-into-mlm-despite-the-known-facts/) - by Robert L. FitzPatrick For many years, I addressed questions about why so many people, especially younger people, fall into MLM with a simple answer: deception. MLM is a utopian, almost irresistible proposition, a fraud, deviously disguised as a legitimate business. I added that the deceptive lure is bolstered by the authorities' failure to enforce anti-fraud MLMis to income opportunity what homelessness is in the housing sector. - [Upcoming New Book Addresses Most Basic Question of All: Is MLM Direct Selling?](https://www.pyramidschemealert.org/upcoming-new-book-addresses-most-basic-question-of-all-is-mlm-direct-selling/) - Each year, more than 20 million Americans get recruited into multi-level marketing (MLM) to be “direct sellers” of soaps and supplements, leggings and lotions, cosmetics and crypto, among other things. Few ask the first question: “Is MLM really direct selling?” If not, it’s a con, using a false identity as bait into a pyramid scheme - [Extinction Alert: The Plight of Avon and Tupperware](https://www.pyramidschemealert.org/extinction-alert-the-plight-of-avon-and-tupperware/) - MLM is not and never was "direct selling" (door-to-door retailing). Mass merchandising, big box stores, mail-order and then the internet, among other societal changes killed off the old "direct selling" model generations ago. MLM promoters stole the revered old identity of "direct selling" to disguise the newly invented pyramid recruiting scheme, turning the salespeople into - [MLM and Crypto, Unsurprisingly Similar](https://www.pyramidschemealert.org/mlm-and-crypto-unsurprisingly-similar/) - [et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]I call to your attention a very informative podcast, not about MLM directly, but one that goes to the heart of all “anti-MLM” discussions: What Is MLM? The featured podcast is the Intercept, hosted by Ryan Grim, interviewing actor and activist, Ben McKenzie. The episode is entitled, “Is Crypto a - [India's Money Laundering Case against Amway Breaks New Ground in Enforcement and Revealing MLM](https://www.pyramidschemealert.org/amways-direct-selling-is-money-laundering-machine-mlm/) - Financial regulators in India have charged the Amway Corporation with a financial crime: running a $7 billion “money laundering” scam. Amway’s “multi-level marketing” enterprise is described as "pyramid fraud in the guise of direct selling.” This charge breaks new ground in law enforcement of “multi-level marketing.” By presenting another way to describe the MLM phenomenon, as a - [Amway Charged with Massive Money Laundering Scheme in India](https://www.pyramidschemealert.org/amway-charged-with-massive-money-laundering-scheme-in-india/) - Robert Financial regulators in India have taken one of the most significant government actions against MLM in recent history. It will be examined by FTC and SEC in the USA and similar regulators around the world. The Enforcement Directorate (ED), a federal law enforcement agency in India, has attached Amway assets worth $190 million. The attached assets represent about 40% - [Activists Ask: How to Comment on FTC’s “Earnings Rule” without Treating MLM as “Legitimate”?](https://www.pyramidschemealert.org/activists-ask-how-to-comment-on-ftcs-earnings-rule-without-treating-mlm-as-legitimate/) - The Federal Trade Commission (FTC) announced it will consider a new “earnings rule” to restrict false or misleading “earning claims" by companies, including multi-level marketing. It is asking consumers to send comments. This is good, yes? Well, better than nothing, maybe, but the Rule could be as misleading and harmful to consumers as MLM’s fake earnings - [Revolving Door, Influence-Peddling on Full Display as FTC Discusses Policies on MLM Deception](https://www.pyramidschemealert.org/revolving-door-influence-peddling-on-full-display-as-ftc-discusses-policies-on-mlm-deception/) - On Feb. 17, the Federal Trade Commission (FTC) announced it would begin a long-term process of possibly making a rule against deceptive "earnings claims." Many opponents and critics of multi-level marketing are hopeful this first step in possible FTC rule-making will lead to law enforcement against MLM's fake data and misleading promises of income. These - [Multi-Level Marketing: Incubator and Precursor of Crypto and NFTs](https://www.pyramidschemealert.org/multi-level-marketing-incubator-and-precursor-of-crypto-and-nfts/) - A New York Times article this week reported that the most significant, and likely the most persuasive, advertisements on the most famous advertising platform of the year – the American Super Bowl – will be for Crypto currencies and NFTs. There will, of course, be the usual car, beer and technology commercials, but it is the - [Ponzinomics, the Book, after One Year: Lessons and Observations on Telling the Truth about MLM](https://www.pyramidschemealert.org/ponzinomics-the-book-after-one-year-lessons-and-observations-on-telling-the-truth-about-mlm/) - PONZINOMICS, the first, and so far still the only book to comprehensively cover the MLM phenomenon, has been available one year now. Author Robert FitzPatrick offers lessons and observations from the one-year perspective. Spoiler: Documenting the truth about MLM is still being called "anti-MLM"; the FTC is still pretending MLM is "legitimate" and claims it - [MLM's Devious "Defenses" Answered in YouTube Interview](https://www.pyramidschemealert.org/mlms-devious-defenses-answered-in-youtube-interview/) - The classic "defenses" used to confuse, divert, and entrap consumers in MLM pyramid schemes are addressed – and dispatched one by one – in a new YouTube interview. The interview with Robert L. FitzPatrick is published by a new anti-MLM non-profit, Pyramid Scheme Termination Cause and hosted by the founder, Jason Tsang. Trusting their own - [MLM Is Not, and Never Was, "Direct Selling"](https://www.pyramidschemealert.org/mlm-is-not-and-never-was-direct-selling/) - #post_excerptMLM isthe creation of a financial fantasies, frauds and follies that captured popular imagination and exposed a blind spot, which became the tool of charlatans and their dupes, exponential expansion (5X5X5X…) - [Leading MLM Spokesman Blasts MLM Consumer Protection Conference as “Anti-Business and Un-American”](https://www.pyramidschemealert.org/leading-mlm-spokesman-blasts-mlm-consumer-protection-conference-as-anti-business-and-un-american/) - #post_excerptDr. Luzes stated that multi-level marketing is the last area of the economy that fosters faith in the American Dream. The conference critique of MLM, therefore, is “un-American,” - ["Ponzinomics" Explained](https://www.pyramidschemealert.org/ponzinomics-explained/) - The new book, PONZINOMICS, The Untold Story of Multi-Level Marketing, by Robert L. FitzPatrick is discussed in a popular writer's podcast hosted by Landis Wade in Charlotte, NC, where FitzPatrick is based. The 40 minute podcast delves into the meaning of the term, "Ponzinomics," how and why the book -- the first of its kind - ["Business" Mask of MLM Removed](https://www.pyramidschemealert.org/business-mask-of-mlm-removed/) - Nothing is more responsible for consumers falling into the MLM trap than the belief that they are investing in a "legitimate business." Thinking MLM is "business" causes consumers to believe the "income opportunity" is real, that there is actual "demand" for the products and that there are "customers." None of that is true. It also - [First Consumer Conference on MLM: Register Now/ LA Primera Conferencia Sobre Protección de Consumidores en MMN: Regístrese Ahora](https://www.pyramidschemealert.org/first-consumer-conference-on-mlm-register-now-la-primera-conferencia-sobre-proteccion-de-consumidores-en-mmn-registrese-ahora/) - It's been a long time coming. Finally a consumer conference is being held on "multi-level marketing," exposing and examining actual financial realities, consumer harm, types of deception, analysis of cult persuasion, history of false product claims, challenges to legality and law enforcement. An international panel of experts and advocates. No MLM spin and coverups. Multi-Level - [Déjà vu: WA State Regulators Let LuLaRoe Off; Ignore Elephant in the Room](https://www.pyramidschemealert.org/deja-vu-wa-state-regulators-let-lularoe-off-ignore-elephant-in-the-room/) - #post_excerptAfter several years of litigation, the state of Washington settled with the MLM, LuLaRoe, with no admission of guilt, a tiny payment to victims. - [HBO Documentary, The Vow, Covers Up Core Fact about NXIVM and Keith Raniere](https://www.pyramidschemealert.org/hbo-documentary-the-vow-covers-up-core-fact-about-nxivm-and-keith-raniere/) - The HBO documentary omits the reality that the sex cult, NXIVM was merely a classic MLM scheme and Keith Raniere is a stereotype, narcissistic MLM leader. NXIVM and Raniere are not singular, but representative of a whole class of "businesses" called multi-level marketing. - [An Untold Story: How MLM Shaped Donald Trump’s Politics and Presidency](https://www.pyramidschemealert.org/an-untold-story-how-mlm-shaped-donald-trumps-politics-and-presidency/) - It is not denied or hidden that Donald Trump is involved and connected to multi-level marketing (MLM). Wall Street Journal and other business media report Trump’s 10 years as spokesman for ACN and his namesake MLM, Trump Network. How much money in total he gained from MLM is not known but thought to be in the - [Fed Prosecution of Pyramid Money-Processor, Payza, Reveals Dilemma of Identifying “Legitimate” MLMs](https://www.pyramidschemealert.org/fed-prosecution-of-pyramid-money-processor-payza-reveals-dilemma-of-identifying-legitimate-mlms/) - by Robert L. FitzPatrick The U.S. Dept. of Justice (DOJ) recently obtained guilty pleas from two individuals involved in a global PayPal-like money-transfer company, called Payza. According to the DOJ, Payza served numerous merchants that were “Cyclers” and “MLMs”. The DOJ claims the scheme processed more than $250 million in illicit transactions. As an unintended - [MLM Recruiting during Corona Shut-Down Reveals Sham Identity of "Direct Selling"](https://www.pyramidschemealert.org/mlm-recruiting-during-corona-shut-down-reveals-sham-identity-of-direct-selling/) - That revenue and enrollments of some multi-level marketing companies have increased during the government-ordered shut-down and quarantining is yet another proof that “MLM” is not “direct selling.” Under pandemic conditions there could be no “parties”, personal demonstrations, or “person-to-person” persuasions. Everything is online. So what added value could “MLM” provide consumers that non-MLM online selling does not already - [Economic "Pandemic", a Review by Robert FitzPatrick of a Groundbreaking New Book in India](https://www.pyramidschemealert.org/economic-pandemic-a-review-by-robert-fitzpatrick-of-a-groundbreaking-new-book-in-india/) - This is the story of how multi-level marketing (MLM) schemes, e.g., Amway, Herbalife, etc., got into India and the sad and tragic consequences to that country. It is from the remarkable new book, Marauders of Hope, by Aruna Ravikumar, a courageous Indian journalist, based in the city of Hyderabad in south central India. - [Wounded Souls, the Inner-Life of MLM Victims](https://www.pyramidschemealert.org/wounded-souls-the-inner-life-of-mlm-victims/) - What everyone knows, yet few will say, is that the greatest injury suffered by MLM victims is not dollar losses. It is the blow to the soul, an injury that may be carried unhealed throughout life. - [Yahoo Finance Podcast on MLM Is a Milestone in Business Media Coverage](https://www.pyramidschemealert.org/yahoo-finace-podcast-on-mlm-is-a-milestone-in-business-media-coverage/) - Yahoo Finance's podcast on multi-level marketing, is as a milestone in business media coverage of MLM. - [Soul of MLM Examined](https://www.pyramidschemealert.org/soul-of-mlm-examined/) - In a new, hour-long interview, Jordan Harbinger (The Art of Charm) asked PSA President, Robert FitzPatrick to explore the deepest, darkest elements of MLM. The interview examines how MLMs capture people’s dreams, take over their lives, and insinuate into families and communities. Harbinger's interest sprang from his work to aid men in discovering their own power - [NXIVM Victim Lawsuit Reveals Toxic Interplay of Pyramid Scheme and Cultism](https://www.pyramidschemealert.org/nxivm-victim-lawsuit-reveals-toxic-interplay-of-pyramid-scheme-and-cultism/) - Falsely wrapped in the imagery and rhetoric of legitimate commerce, politically protected by a captured Federal Trade Commission and financially supported by Wall Street speculators, the terrible realities of “multi-level marketing” can remain hidden even when in plain sight. Yet, when displayed – in extreme – as in the latest MLM atrocity called “NXIVM”, MLM’s - [Where MLM Came From: Direct Selling or Pyramid Scam, from Day One?](https://www.pyramidschemealert.org/where-mlm-came-from-direct-selling-or-pyramid-scam-from-day-one/) - An interview by Alanda Carter with Robert FitzPatrick about how MLM all began - [History of Pseudo-Law Enforcement at FTC Protects MLM Pyramids and Lures People into them.](https://www.pyramidschemealert.org/history-of-pseudo-law-enforcement-at-ftc-protects-mlm-pyramids-and-lures-people-into-them/) - Recent FTC prosecutions of MLMs, Advocare, Nerium/Neora and Success by Health are rightfully applauded by citizens. However, these FTC actions – once again – raise false hopes that the FTC, finally, recognizes the scale of MLM harm and is, finally, going to act decisively. History indicates otherwise and the language of the latest FTC prosecution - [New Book "Ponzinomics" Reveals how Politics, not Law, Protects MLM and Lets It Continue Pyramid Recruiting](https://www.pyramidschemealert.org/new-book-ponzinomics-reveals-how-politics-not-law-protects-mlm-and-lets-it-continue-pyramid-recruiting/) - The upcoming book, Ponzinomics,The Untold Story of Multi-Level Marketing and How Direct Selling Became an American Swindle, delves deeply into these questions. It’s conclusions, which some may find disheartening, even shocking, strip away this phony narrative of government helplessness and legal “complexity” that leaves the public vulnerable and hopeless - [The Agony and the Angst: Wall Street Investors Ponder FTC “Enforcement” on MLMs](https://www.pyramidschemealert.org/the-agony-and-the-angst-wall-street-investors-ponder-ftc-enforcement-on-mlms/) - MLM stocks, already down 21% for 2019, face a potential hit from FTC pyramid scheme prosecutions - ["Newspeak" Is Now Official Policy at FTC on MLM](https://www.pyramidschemealert.org/newspeak-is-now-official-policy-at-ftc-on-mlm/) - After publishing a recent "Update" newsletter for Pyramid Scheme Alert, I was sent a correction by one reader to the statement that the FTC had not prosecuted any "MLMs" in the last two years. There had been at least two in early 2018, it was pointed out. It is true that the characteristics of two - [Millions of “Direct Sellers” Disappear!](https://www.pyramidschemealert.org/disappearing-direct-sellers/) - At least 12 million Americans that had been classified and counted as “direct sellers,” aka MLM, officially disappeared from the rolls. - [Is Public Perception of MLM as a Cultic Scam Reaching a Tipping Point?](https://www.pyramidschemealert.org/is-public-perception-of-mlm-as-a-cultic-scam-reaching-a-tipping-point/) - The reality that for years only a few independent and courageous writers, bloggers, attorneys, whistle blowers and web publishers dared to say and for which they were often sued, ridiculed, or physically threatened is now being said out loud by institutional voices – journalists, culture critics, tv and movie producers and academics. - [News Media Keep Taking the Bait of MLM “Products”](https://www.pyramidschemealert.org/news-media-keep-taking-the-bait-of-mlm-products/) - The media avoid realties of MLM pyramid schemes by focusing on flawed or overpriced products - [Advocare's Claim, "FTC-Made-Us-Quit-MLM," is Suspicious](https://www.pyramidschemealert.org/advocares-claim-ftc-made-us-quit-mlm-is-suspicious/) - Advocare's claim that the FTC is forcing it to abandon MLM is a suspicious claim. Other factors, including cash-flow, family disputes and recruiting collapse are more likely as primary drivers. - [The Importance and Futility of Class Action Lawsuits against MLMs](https://www.pyramidschemealert.org/the-importance-and-futility-of-class-action-lawsuits-against-mlms/) - Recently, yet another class action lawsuit has been filed against a "multi-level marketing" company, in this instance, "Young Living Essential Oils". This Utah-based MLM company (are they all in Utah?) is a digital reproduction of so many other MLMs, that are themselves copies of earlier ones, all leading back to the seminal scam known as - ["News" Articles on MLM Uphold Myths and Lies, Mislead](https://www.pyramidschemealert.org/news-articles-on-mlm-uphold-myths-and-lies-mislead/) - News stories about "MLM" inevitably repeat lies, support myths and mislead consumers into wasting time and money. - [Trump's "MLM" Experience Laid Foundation for his Politics](https://www.pyramidschemealert.org/trumps-mlm-experience-laid-foundation-for-his-politics/) - "Calling a person a "liar" used to be one of the worst things you could say about somebody personally," a friend recently commented. He was referring, ruefully, to the president of the United States being routinely characterized as a liar, and his well documented lies being accepted as "politics," without a negative reflection on his - [10 Big Truths about Multi-Level Marketing](https://www.pyramidschemealert.org/10-big-truths-about-multi-level-marketing/) - Truths, concealed, hidden and denied about what multi-level marketing is and how it operates. A clear and and plainly stated description of MLM realities. - [White Paper Examines MLM Legality and Economic Legitimacy](https://www.pyramidschemealert.org/white-paper-examines-mlm-legality-and-economic-legitimacy/) - The two top legal experts in America on pyramid schemes, attorneys Douglas M. Brooks and Bruce Craig, carefully researched and evaluated the federal court cases that define and outlaw pyramid selling schemes under Section 5 of the Federal Trade Commission Act. They applied these cases to the widespread practices of MLMs today to evaluate MLM legality. - [Sign of What's Coming in Pyramid Scheme Law Enforcement at the FTC](https://www.pyramidschemealert.org/sign-of-whats-coming-in-pyramid-scheme-law-enforcement-at-the-ftc/) - Perhaps the clearest and most direct indicator of what is coming in America for pyramid scheme law enforcement and consumer protection occurred in recent week before the inauguration of president-elect, Donald Trump. Regulation and consumer protection are poised for a dark and dangerous era for consumers worldwide. On January 10, 2017, the United States Federal - [Wall Street Piracy and Pyramid Mania Merge](https://www.pyramidschemealert.org/wall-street-piracy-and-pyramid-mania-merge/) - When pyramid schemes ignite on Main Streets anywhere in the world, the ensuing manias have been compared to a wildfire, a stampede, a mob-like madness. The rallying cries of “get in now, ground-floor opportunity, unlimited income!” are spread virus-like in neighborhoods, churches and offices. The pyramid epidemic is a phenomenon not unlike frantic selling and - [Regulators Asked to Investigate Herbalife](https://www.pyramidschemealert.org/regulators-asked-to-investigate-herbalife/) - Pyramid Scheme Alert has sent an official request letter to to the United States Federal Trade Commission's (FTC) Acting Director of the Consumer Protection Bureau asking that the agency initiate an investigation of the multi-level marketing company, Herbalife. The letter included a statistical analysis of the actual payments made by Herbalife to "Supervisors", the upper level - [Herbalife among MLMs Exposed in new Russian Documentary](https://www.pyramidschemealert.org/herbalife-among-mlms-exposed-in-new-russian-documentary/) - Herbalife is spotlighted among several multi-level marketing (MLM) companies that are debunked in a ground-breaking news documentary on Channel One in Russia, the main television station of that country. The show is currently only in the Russian language but an English-subtitle version will be released soon. See http://www.1tv.ru/sprojects_edition/si5972/fi34455 The show exposed various MLMs for deceptive product claims, - [Zeek Rewards, Just an Ordinary MLM?](https://www.pyramidschemealert.org/zeek-rewards-just-an-ordinary-mlm/) - With Batman-like zeal, the SEC swooped in and closed down the multi-level marketing company, Zeek Rewards. Should we all feel safer now? Or should we be wondering why the SEC singled out this one MLM but left all the hundreds of others to run rampant? Zeek offered MLM participants the chance to participate in money - ["Anti"-Pyramid Scheme Bill and "Alternative Legality"](https://www.pyramidschemealert.org/anti-pyramid-scheme-bill-and-alternative-legality/) - The MLM industry is trying to legalize pyramid schemes. - [Why MLM Is Invisible, Part II: False History and Identity](https://www.pyramidschemealert.org/why-mlm-is-invisible-part-ii-false-history-and-identity-2/) - In the previous (Part I) of this series, it was seen how the fictionalized language that was invented by MLM promoters serves to prevent critical analysis. Terms, which have nothing to do with how MLM actually operates, serve as protective coating, preventing a witness or narrator from accurately describing MLM realities, even if he/she knows - [The Myth of Multi-level Marketing](https://www.pyramidschemealert.org/the-myth-of-multi-level-marketing/) - Welcome to the False Profits Blog. When I wrote the book, False Profits, 10 years ago, I described MLM and pyramid schemes as “kissing cousins,” closely related, yet not necessarilyone and the same. With 10 years of additional research, courtroom experience, communications with thousands of participants, and in-depth analysis of scores of MLMs, I now - [MLM: Systematically Flawed](https://www.pyramidschemealert.org/mlm-systematically-flawed/) - Consumer advocate and False Profits blog follower, Frank Thomas (July 31, 2008 Comment in Economics/Financial category) states the unsayable and, for some, the unthinkable -- that "a good MLM" is an oxymoron and “the MLM business model is systematically flawed.” Could this be true? If it were, it means that MLM is a colossal scam, - [Ethical ByPasses](https://www.pyramidschemealert.org/ethical-bypasses/) - Even if you could not figure out whether an MLM is a fraud or a legitimate business, some typical behavior that the MLMs expect from you might tip you off that you have stepped into a scam, a place where ethics are “bypassed” on the way to the “dream.” 1. Asking others to join the - [Direct Selling Association (DSA), Seeks to Legalize what the California AG Prosecutes as Fraud](https://www.pyramidschemealert.org/direct-selling-association-dsa-seeks-to-legalize-what-the-california-ag-prosecutes-as-fraud/) - The multi-level marketing scheme, Your Travel Biz.com, which is now being sued by the California Attorney General as a "gigantic pyramid scheme," won membership in the Direct Selling Association in 2007. DSA is the lobbying and trade group for multi-level marketing. It advertises its membership list like a Good Housekeeping Seal of Approval for MLMs. - [Wanted for Fraud in California, YTB Is just a Typical MLM](https://www.pyramidschemealert.org/wanted-for-fraud-in-california-ytb-is-just-a-typical-mlm/) - The multi-level marketing (MLM) company, Your Travel Biz.com (YTB), is being prosecuted for fraud by the Attorney General of California. And now, a class action lawsuit has also been filed against YTB by some of its agents for operating a pyramid scheme. Over 100,000 American households are in YTB as “travel agents.” Large numbers of - [Monavie, a Harbinger of Amway’s End Times](https://www.pyramidschemealert.org/monavie-a-harbinger-of-amways-end-times/) - Amway is foundering and fighting for its life. New upstarts are challenging it, riding on the political and legal highway that Amway paved. Though Amway is huge, it also is hugely vulnerable, a house of cards. The newly challenging MLMs use all the tricks that Amway taught them and they play off against Amway’s long - [Financial Crisis: A Mirror Image of MLM](https://www.pyramidschemealert.org/financial-crisis-a-mirror-image-of-mlm/) - For those who are asking how our national economy fell into the current financial crisis or how the nation’s business leaders could not have seen it coming or how the federal government could have allowed it to happen, a study of multi-level marketing (MLM) – which attracts more than five million Americans each year with - [Burned Again and Again and Again](https://www.pyramidschemealert.org/burned-again-and-again-and-again/) - There is a counter-intuitive rule in the world of scams. It is that the easiest person to fleece is someone who has recently been fleeced. Wouldn’t the previous loss cause the consumer to be more vigilant, plus experienced now? Sadly, for many, no. To the contrary, stronger motives and forces drive consumers, once burned, to - [Making Fraud Legal](https://www.pyramidschemealert.org/making-fraud-legal/) - The big bad word that is normally reserved for illegal pyramid schemes – COLLAPSE – is now referenced daily in discussions about our stock and credit markets. How could legitimate and regulated markets that are watched over by the Securities & Exchange Commission (SEC) “collapse”? Isn’t the whole idea of federal regulation to prevent such - [MLM Travel Scheme, YTB, May Be Finished Off by Regulators](https://www.pyramidschemealert.org/mlm-travel-scheme-ytb-may-be-finished-off-by-regulators/) - Some state regulators are doing what the Federal Trade Commission (FTC) will not do – protect the public from pyramid selling scams, also called “business opportunity frauds.” The latest example is the scheme, Your Travel Biz.com, a classic pyramid in which consumers buy the right to become “travel agents” and then make money when they - [When Market Declines, Hire More Sales People?](https://www.pyramidschemealert.org/when-market-declines-hire-more-sales-people/) - Economic Recessions always produce new scams. They also expose existing ones. For example, the current Recession exposed Bernard Madoff’s Wall Street Ponzi. Many of Madoff’s investors suddenly needed cash when their real estate and stock market investments sank. When they asked to withdraw their money Madoff could not do it because he had already transferred their - [The Face of Multi-level Marketing](https://www.pyramidschemealert.org/the-face-of-multi-level-marketing/) - Multi-level Marketing (MLM) has been a significant force in America since 1980. And in most of that time, it never had an iconic human face — a Jack Welch, Bill Gates, Ray Krock, or a Lee Iacocca. Usually, when a MLM executive was seen on TV it was due to a lawsuit or a government - [Who Loses If Herbalife Is Not Investigated or Prosecuted](https://www.pyramidschemealert.org/who-loses-if-herbalife-is-not-investigated-or-prosecuted/) - 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 and over to those who might profit or lose if - [MLM's Version of Glengarry Glen Ross](https://www.pyramidschemealert.org/mlms-version-of-glengarry-glen-ross/) - In David Mamet’s classic film, Glengarry Glen Ross, an arrogant and abusive sales manager informs a struggling real estate sales team that there will be a one-week sales contest. The winner gets a Cadillac. The runner up gets a set of steak knives and the rest are fired. The desperate and brow-beaten salesmen are further - [Yes, But What About this One?](https://www.pyramidschemealert.org/yes-but-what-about-this-one/) - 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 about, and some of the schemes generating numerous inquiries: "Your Promised Land," - [Donald Trump: MLM's Bankrupt Hero](https://www.pyramidschemealert.org/donald-trump-mlms-bankrupt-hero/) - Those who tell the truth about multi-level marketing (MLM) -- that it is a pseudo-business, a mere camouflage for a classic pyramid scheme -- face a wall of myths, deceptions and delusions. Charting the pyramid model and its flawed structure and characteristics, documenting the 99% failure rates, reporting the testimony of insiders in lawsuits and - [The Evolution of Fraud](https://www.pyramidschemealert.org/the-evolution-of-fraud/) - As business has grown more complex, fraud has evolved and adapted accordingly. Multi-level marketing (MLM), the most common form of pyramid/ponzi fraud, is the product of years of evolutionary adaptation in the scam and swindle field, matching the adaptation of the legitimate marketplace. Public awareness and law enforcement always lag behind new forms of fraud. - [The Fully Disclosed Fraud](https://www.pyramidschemealert.org/the-fully-disclosed-fraud/) - Until recent years, to “prove” that an endless chain income or sales scheme was a fraud only required explaining that it was in fact an endless chain. In other words, endless chain schemes were understood to be “inherent” frauds. They are not good businesses gone bad or good people doing wrong. They are, by definition, - [Buyer Beware: What Is Not Disclosed when You Are Recruited to Join a Multi-level Marketing Scheme](https://www.pyramidschemealert.org/buyer-beware/) - What if a multi-level marekting scheme disclosed the full truth when a consumer is recruited? What would "full disclosure" include? What is being left out at the recruitment rallies? Is the income opportunity really "unlimited"? What are the costs? How much time is really required? What are the loss and turnover rates? See what full disclosure would include. - [Naked Truth: Penn & Teller Nail MLM](https://www.pyramidschemealert.org/naked-truth-penn-teller-nail-mlm/) - 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 reports on multi-level marketing. Yet, it was not a news reporter but a comedy/satire show - [Amway's Deceptions](https://www.pyramidschemealert.org/amways-deceptions/) - 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 deception? As early as the 1980s, a CBS 60 Minutes exposé concluded that, - [The Obama Election and the Future of Multi-level Marketing](https://www.pyramidschemealert.org/the-obama-election-and-the-future-of-multi-level-marketing/) - One Key Figure Sheds Light on MLM’s Future Many have asked if the extraordinary shift in power in America – with the election of Barack Obama and a large Democratic majority in Congress and in many states – will affect regulation and law enforcement of pyramid schemes and multi-level marketing (MLM). Frankly, whether “change” - [Laughing into the Face of Fraud](https://www.pyramidschemealert.org/laughing-into-the-face-of-fraud/) - Government regulators and most news media turn their heads or find other diversions from the reality of a fraud epidemic on Main Street America. But some comedians, movie producers, comic strip writers, and television sit-coms are finding rich material in the mass folly and pathos. Indeed, laughter, ridicule and satire may be the best weapons - [The BurnLounge Prosecution Shows How and Why MLM Scams Flout the Law and the FTC](https://www.pyramidschemealert.org/the-burnlounge-prosecution-shows-how-and-why-mlm-scams-flout-the-law-and-the-ftc/) - On July 1, 2011 – more than four years after the government brought charges — a federal judge ruled that the multi-level marketing company, called BurnLounge, Inc., operated as an illegal pyramid scheme. The ruling supported the prosecution of BurnLounge by the Federal Trade Commission (FTC). The case against BurnLounge was one of the rare - [Consumer Alert: Beware of Scam Using Initials, F.T.C.](https://www.pyramidschemealert.org/consumer-alert-beware-of-scam-using-initials-f-t-c/) - Consumers should be on the lookout for an entrapping and misleading document circulating and being widely referenced on the Internet entitled, "Business Guidance Concerning Multi-Level Marketing." It purports to offer guidelines for legal and legitimate "multi-level marketing" companies. It is being referenced by "MLM" companies to validate deceptive practices. It is a smokescreen for protecting - [Is Social Security a Ponzi Scheme?](https://www.pyramidschemealert.org/is-social-security-a-ponzi-scheme-2/) - A presidential candidate charges that the American Social Security system is a “Ponzi scheme” not long after the largest Wall Street Ponzi scheme in history collapsed and wiped out pensioners and charities. Pundits loudly argue the candidate’s claim but almost none challenges the substance. The question is reduced to opinion, not fact. Ponzi schemes take - [A Typical Phone Call from an Amway (or other MLM) Hopeful](https://www.pyramidschemealert.org/a-typical-phone-call-from-an-amway-or-other-mlm-hopeful/) - 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 billion dollar business with millions of customers - [The Case of Herbalife's Missing Customers](https://www.pyramidschemealert.org/the-case-of-herbalifes-missing-customers/) - A court in Belgium recently ruled that the US-based multi-level marketing company, Herbalife International, is an illegal pyramid scheme. Herbalife is one of the largest and oldest of all multi-level marketing companies and operates in 74 countries. It is an American icon and a world-class representative of the entire multi-level marketing industry. Yet, the court - [This Is Not a Pyramid Scheme!](https://www.pyramidschemealert.org/this-is-not-a-pyramid-scheme/) - I have a fantastic opportunity for you. It’s like a job but a lot better. It’s an opportunity to make unlimited income. Pay only $399 for a starter kit, and then you can work as an independent salesperson for our company, selling the company’s great products on a commission basis. Why should you pay for - [The Cult of MLM](https://www.pyramidschemealert.org/the-cult-of-mlm/) - 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 most infamous cults have been known for violence, mass suicides or abusive - [Deception and Delusion: How Pyramid Schemes Maintain the "Direct Selling" Disguise](https://www.pyramidschemealert.org/deception-and-delusion-how-pyramid-schemes-maintain-the-direct-selling-disguise/) - According to the MLM companies, Herbalife, Nu Skin and Amway, and others, the great majority of people who sign sales contracts, join as “salespeople” and buy sales kits have absolutely no interest in being salespeople or in making any money at all in those enterprises. Why did they join and pay the fees and sign - [Half of Amway's Products Are Retailed. Really! Plus Other Wacky Numbers](https://www.pyramidschemealert.org/half-of-amways-products-are-retailed-really-plus-other-wacky-numbers-3/) - The Search for Amway Customers In a recent video interview with Amway executives, Doug DeVos and Steve Van Andel, a Wall Street Journal reporter asked them a probing and revealing question. The question was, what percentage of the products that Amway sells to the distributor/salespeople, (called Independent Business Owners, IBO) are resold to end-user customers - [Have I Got a Deal For You: The Endless Chain Offer](https://www.pyramidschemealert.org/have-i-got-a-deal-for-you-the-endless-chain-offer/) - This Blog references an excellent article on the legality of multi-level marketing by MLM legal expert, Bruce Craig, former Asst. Attorney General of the state of Wisconsin. http://seekingalpha.com/article/918831-an-investor-s-guide-to-identifying-pyramid-schemes Certain kinds of frauds and flim-flams are well understood. Others require study. Newer types of scams require time and experience before we understand how to recognize and - [Half of Amway's Products Are Retailed. Really! Plus Other Wacky Numbers](https://www.pyramidschemealert.org/half-of-amways-products-are-retailed-really-plus-other-wacky-numbers-2/) - The Search for Amway Customers In a recent video interview with Amway executives, Doug DeVos and Steve Van Andel, a Wall Street Journal reporter asked them a probing and revealing question. The question was, what percentage of the products that Amway sells to the distributor/salespeople, (called Independent Business Owners, IBO) are resold to end-user customers - [Why MLM Is Invisible, Part 1: False Language](https://www.pyramidschemealert.org/why-mlm-is-invisible-part-1-false-language/) - Normally, a social or economic phenomenon, in which as many as 15 million American households participate year after year and which involves intrusive and sometimes disruptive personal and social interactions in addition to potentially thousands of dollars of lost investments, would be extensively studied. It would be regularly reflected in the news, as a subject - [Racketeering Suit Against MLM, Stream/Ignite, Cleared to Go Forward](https://www.pyramidschemealert.org/racketeering-suit-against-mlm-streamignite-cleared-to-go-forward/) - The United States Supreme Court has ruled that it will not hear the appeal by the Texas-based MLM, Stream/Ignite, leaving standing the class action certification granted by the US 5th Circuit Court of Appeals. After years of evasive court room tactics by Stream, this ruling finally clears the way for the case to move forward. It affects more than 200,000 - [On 20th Anniversary of "False Profits" Book, PSA Newsletter Examines Future of MLM](https://www.pyramidschemealert.org/on-20th-anniversary-of-false-profits-book-psa-newsletter-examines-future-of-mlm/) - A new "Update" newsletter has been published by Pyramid Scheme Alert, entitled, "The History and Future of Multi-Level Marketing." The newsletter is prompted by the 20th anniversary of the book, False Profits, authored by PSA president, Robert FitzPatrick with co-author, Joyce K. Reynolds. The newsletter provides a recap of the book, which is available in - [Hyped by Donald Trump, ACN Video Phone Business May Be Collapsing](https://www.pyramidschemealert.org/hyped-by-donald-trump-acn-video-phone-business-may-be-collapsing/) - Donald Trump tells Americans that it is a technology breakthrough, a wave of the future; everybody will own one; better get in now! He is personally endorsing and hyping the "revolutionary IRIS V Video Phone", the flagship product and the new icon of the multi-level marketing company, ACN, for which Donald Trump serves as pitchman-in-chief. - [Donald Trump, MLM and Pyramid Schemes, Year-End 2016 Update](https://www.pyramidschemealert.org/donald-trump-mlm-and-pyramid-schemes-year-end-2016-update/) - Pyramid Scheme Alert's Year-end Update report has been published. It is entitled, "Donald Trump, MLM and Pyramid Scheme Politics," covering how the presidential and congressional election may affect law enforcement and consumer protection regarding multi-level marketing frauds and pyramid schemes. The connections between Donald Trump and some of his appointees and profits from MLM schemes - [John Oliver Dares to Say It: "MLM Is a Pyramid Scheme"](https://www.pyramidschemealert.org/john-oliver-dares-to-say-it-mlm-is-a-pyramid-scheme/) - The popular and trend-setting HBO show, Last Week Tonight with John Oliver took direct aim at "multi-level marketing". In a remarkable and hilarious 30-minute segment, satirist John Oliver goes to the heart of MLM and tells the dead-honest truth, the one that the media is so fearful of saying. It is that "multi-level marketing" and - [MLM Lobbyists Pushing the Legalization of Recruiting Scams as "Direct Selling"](https://www.pyramidschemealert.org/mlm-lobbyists-pushing-the-legalization-of-recruiting-scams-as-direct-selling/) - The latest “UPDATE” from Pyramid Scheme Alert is a special consumer alert to HR 5230, the proposed federal law that will effectively prevent all further FTC prosecutions of “multi-level marketing” companies. The bill is designed to legalize marketing practices that are currently prosecuted as "unfair and deceptive". It is a "pyramid-protection" law. You can read the report, with - [FTC Asked to Halt "Pay-to-Play" Rules in Herbalife and all MLMs](https://www.pyramidschemealert.org/ftc-asked-to-halt-pay-to-play-rules-in-herbalife-and-all-mlms/) - Pyramid Scheme Alert has sent a formal letter to the FTC chairperson and the head of the Consumer Protection Bureau asking the FTC to ban Herbalife from "effectively requiring purchases" by its recruits that are tied to its promised "unlimited rewards". This would mean eliminating quotas, incentives and penalties in the pay plan in which purchases - [MLM, Advocare, Is Focus of ESPN Exposé on Misleading Sports Endorsements and False Income Claims](https://www.pyramidschemealert.org/mlm-advocare-is-focus-of-espn-expose-on-misleading-sports-endorsements-and-false-income-claims/) - The sports network, ESPN, has published a major investigation of the involvement of some sports stars as endorsers of a "multi-level marketing" scheme, called Advocare International, offering evidence of bogus medical claims and misleading income promises. The most visible "endorser" of the scheme is Drew Brees of the New Orleans Saints NFL football team. Advocare - [British Media Discover MLM Using National Health Service for Recruiting](https://www.pyramidschemealert.org/british-media-discover-mlm-using-national-health-service-for-recruiting/) - In a recent article in the Sunday Times, journalist, Robin Henry, reports that a USA-based MLM, called Forever Living Products (FLP), has infiltrated the UK's public health system and its recruiters are using the tax-paid healthcare program as a cover for promoting the financial scheme that involves buying its "health" products and recruiting more "distributors." Some British taxpayers - [Documentary Finally Gives a Voice to Latinos Being Duped by Herbalife](https://www.pyramidschemealert.org/documentary-finally-gives-a-voice-to-latinos-being-duped-by-herbalife/) - https://www.youtube.com/watch?v=oNM3MB04qFk - [The Terrible Truth About Multi-Level Marketing](https://www.pyramidschemealert.org/the-terrible-truth-about-multi-level-marketing/) - Read the latest news and analysis about pyramid schemes and multi-level marketing in the "Update" newsletter published by Pyramid Scheme Alert. The latest Update analyzes the "terrible truth" about the ways in which ALL the hundreds of "MLM" companies, aka "multi-level marketing", aka "network marketing", are essentially the same con, and why they will always produce - [Talk Fusion: Red Flags and New Items of Interest](https://www.pyramidschemealert.org/talk-fusion-red-flags-and-new-items-of-interest/) - Class Action Lawsuit Filed Against Talk Fusion. This DSA member is accused of running a pyramid fraud. - [Another Member of Direct Selling Association, Talk Fusion, Sued for Pyramid Scheming](https://www.pyramidschemealert.org/another-member-of-direct-selling-association-talk-fusion-sued-for-pyramid-scheming/) - Yet another member of the Direct Selling Association is at the center of pyramid fraud controversy. This time, DSA member, Talk Fusion. Earlier this year, Direct Selling Association member, Vemma, after receiving an "ethos" award from the DSA, was sued by the US government, FTC, for running a pyramid scam. Also, another attorney member of - [ACN: Red Flags and News Items of Interest](https://www.pyramidschemealert.org/acn-red-flags-and-news-items-of-interest/) - Donald Trump was paid $400,000 to endorse ACN. New about ACN's purchase of publicity and credibility The Donald Trump scandal he wants you to forget: Inside his despicable scheme to prey on the poor & make himself richer. investigation of ACN's Income Plan. Montana vs. ACN, a David and Goliath Battle: Article about the 2010 - [MLM Has a Spokesman Now. He's Running for President!](https://www.pyramidschemealert.org/mlm-has-a-spokesman-now-hes-running-for-president/) - Donald Trump is getting a lot of attention these days as a Republican Party candidate for the highest office in the land, president of the United States. He has aroused anger for calling Mexican immigrants "rapists", saying Vietnam vet, Senator John McCain, is not a war hero because he was "captured", calling another Senator also - [Saturation Reality and the Myth of MLM "Growth"](https://www.pyramidschemealert.org/saturation-and-the-myth-of-mlm-growth/) - Over seven years ago, the report, "The Myth of MLM Income Opportunity" was published by Robert L. FitzPatrick and aimed at consumers being solicited to join MLMs that promised "unlimited income opportunity." Using data from 11 MLMs that published "income disclosures", the report showed that less than 1% of all MLM participants ever earn a profit, according to the - [Finally, a Film on the Truth about Multi-Level Marketing: You Can Help!](https://www.pyramidschemealert.org/finally-a-film-on-the-truth-about-multi-level-marketing-you-can-help/) - After nearly three decades of operating in the shadows, "multi-level marketing" has recently become the focus of a feature investigative article in Rolling Stone magazine, the subject of the popular NPR radio documentary show, This American Life, a full length television documentary in Russia, and MLM seems to be in the business media every day. When the media looks closely the reality - [Canada Deports MLM Promoter to UK](https://www.pyramidschemealert.org/canada-deports-mlm-promoter-to-uk/) - The news headline tells of multi-level marketing con-man, Alan Kippax, convicted for pyramid scheme fraud, and in unrelated crimes, causing death and injury with reckless driving and later being caught in a drug selling ring, now being deported from Canada to the UK where he was born. Kippax has been in Canada since he was two-years - [New Video Shows How to Recognize MLM Pyramid Schemes](https://www.pyramidschemealert.org/new-video-shows-how-to-recognize-mlm-pyramid-schemes/) - Among the most common questions received by Pyramid Scheme Alert are "how can I recognize a pyramid scheme?" and "what about this one?", referring to a particular MLM. Some people also say they don't understand what a pyramid scheme is. Spotting a MLM pyramid scheme is simple, but often made to seem "complex". Just ask this question: Could you make a sustainable - [The True History and Actual Identity of MLM](https://www.pyramidschemealert.org/the-true-history-and-actual-identity-of-mlm/) - Multi-level marketing is not direct selling but rather a legacy of the old Medicine Shows that sold "snake oil." - [News Media Reports on MLM Increasing and Getting to the Truth](https://www.pyramidschemealert.org/news-media-reports-on-mlm-increasing-and-getting-to-the-truth/) - After years of a near-blackout of investigative or insightful media coverage of multi-level marketing (MLM), a shift appears to be occurring. There are more reports and the quality is far better. At the top of the list of recent reports on MLM is the investigative series by Aljazeera America. Aljazeera America series on MLM, focusing - [Visalus: Red Flags and News Items of Interest ](https://www.pyramidschemealert.org/visalus-red-flags-and-news-items-of-interest/) - MLM, Visalus, IPO Pulled Off the Market, Questions Raised The MLM, Visalus Sciences, that also sells diet products and is a subsidiary of the MLM, Blyth Industry (BTH), suddenly began to show 500% growth, caused largely by a massive recruitment drive based on promises of income and that drew thousands of income-seeking consumers from other - [Visalus Sued for Racketeering, Pyramid Fraud](https://www.pyramidschemealert.org/visalus-sued-for-racketeering-pyramid-fraud/) - Class Action Lawsuit filed against the multi-level marketing scheme, Visalus - [Specter of Illegality Stalks Multi-level Marketing](https://www.pyramidschemealert.org/specter-of-illegality-stalks-multi-level-marketing/) - Roundup of prosecutions of multi-level marketing - [Fortune High Tech Rests in Peace while Zombie MLMs Stalk the Public](https://www.pyramidschemealert.org/fortune-high-tech-rests-in-peace-while-zombie-mlms-stalk-the-public/) - by Robert L. FitzPatrick, Pres. Pyramid Scheme Alert The popular and fast-growing multi-level marketing company, Fortune High Tech Marketing (FHTM), is now officially dead. A few of its top leaders are banned “for life” from participating in MLM companies and were required by the FTC to pay back millions of their ill-gotten gain. “In recent - [Why Wall Street Can't Understand Multi-Level Marketing](https://www.pyramidschemealert.org/why-wall-street-cant-understand-multi-level-marketing/) - How is it possible that some of Wall Street's brightest people say they cannot figure out whether Herbalife and other MLMs are pyramid schemes or not? Why do so many journalists become flummoxed when delving into MLM pay plans, contracts, and "income disclosures." And how is that millions of ordinary people lose substantial money in - [The Shocking Realities of MLM Injuries](https://www.pyramidschemealert.org/the-shocking-realities-of-mlm-injuries/) - On May 2, an extraordinary event was held in New York City in which courageous citizens who had been injured at the hands of the MLM, Herbalife and its recruiters, came forth publicly and told their MLM stories. This is a voice that has not been quiet, but, but rather has been ignored or suppressed - [International Coalition of Consumer Advocates](https://www.pyramidschemealert.org/international-coalition-of-consumer-advocates/) - White Paper "THE PYRAMID SCHEME INDUSTRY: Examining Some Legal and Economic Aspects of Multi-Level Marketing" by Douglas M. Brooks, Robert L. Fitzpatrick and Bruce Craig Official Petition Letter to the Federal Trade Commision by International Coalition of Consumer Adocates Signatories to Official Petition Letter to the Federal Trade Commission by International Coalition of Consumer Advocates - [Are "All" MLMs Scams?](https://www.pyramidschemealert.org/are-all-mlms-scams/) - by Robert L. FitzPatrick, Pres. Pyramid Scheme Alert Could "all" MLMs be scams, financial traps in which less than 1% ever make money? Pyramid Scheme Alert is constantly asked this question, along with questions about specific MLM, (What About This One?) Pyramid Scheme Alert has not examined every single MLM but, among the hundreds we - [What's the Matter with Multi-Level Marketing](https://www.pyramidschemealert.org/whats-the-matter-with-multi-level-marketing/) - From all over the world, the people who visit the Pyramid Scheme Alert website ask the same two specific questions more often than they do all others. (1) What about this MLM (fill in the MLM name), legitimate or scam? and (2) Are all MLMs bogus income opportunities? We address that first question about specific - [Income Disclosures of Herbalife, Nu Skin and Amway 2012](https://www.pyramidschemealert.org/income-disclosures-of-herbalife-nu-skin-and-amway-2012/) - Herbalife Nu Skin Amway - [Top 5 Events of 2013 in Pyramid Schemes and Multi-level Marketing ](https://www.pyramidschemealert.org/top-5-events-of-2013-in-pyramid-schemes-and-multi-level-marketing/) - A summary and evaluation of the top 5 events involving pyramid schemes and multi-level marketing, affecting millions of households, is the theme of latest Update newsletter published by Pyramid Scheme Alert. The free newsletter is now also available online. Among the topics covered: Overview of the efforts to expose the truth about the MLM, Herbalife, now - [Lyoness: Euro-MLM Looks Just Like a "Made in the USA" Pyramid Scheme](https://www.pyramidschemealert.org/lyoness-euro-based-mlm-looks-just-like-a-made-in-the-usa-scheme/) - Pyramid Scheme Alert is receiving an increasing number of questions and complaints from people in the USA and other countries about the Austrian-based multi-level marketing scheme, Lyoness. An MLM scheme founded abroad and coming into the USA, after already claiming millions of members, is a new development, a form of "blow-back." Multi-Level Marketing (MLM) was - [Lyoness: Red Flags and News Items of Interest ](https://www.pyramidschemealert.org/lyoness-red-flags-and-news-items-of-interest/) - A European-based website (in English) that offers news and analysis on Lyoness A video news presentation from Austria with English sub-titles. It is thorough. Worth the time to watch. Straightforward and insightful analysis, the Blog, "MLM The American Dream Made Nightmare". See the Wikipedia description of Lyoness. Go the "controversy" and "legality" sections. - [Herbalife CEO Wants Distributors to Lobby to Keep Business in the Dark](https://www.pyramidschemealert.org/herbalife-ceo-wants-distributors-to-lobby-to-keep-business-in-the-dark/) - Herbalife is misleading distributors by sending them a pre-scripted letter to send to Congress that keeps them in the dark about the Herbalife operation. - [Nu Skin: Red Flags and News Items of Interest ](https://www.pyramidschemealert.org/nu-skin/) - Nu Skin Facing Whistle Blower Why Did Nu Skin's Stock Drop? Wall Street Asking Questions about Nu Skin and other Publicly Traded MLMs Judge: Whistle Blower Can Call Nu Skin a Pyramid Scheme - [Herbalife: Red Flags and News Items of Interest ](https://www.pyramidschemealert.org/herbalife-red-flags-and-news-items-of-interest/) - Major Hedge Fund Manager Charges that Herbalife Is an Illegal Pyramid Scheme; (this website offers a rich resource of information about charges and evidence of deception at Herbalife). News Media Interviews with Hedge Fund Manager on Herbalife Pyramid Charges: CNBC Bloomberg More Signs of Herbalife Pyramid Scheme Cited by Pyramid Scheme Alert The Case of Herbalife's - [MLM Trade/Lobbying Group's Defense of Herbalife Challenged](https://www.pyramidschemealert.org/mlm-tradelobbying-groups-defense-of-herbalife-challenged/) - Pyramid Scheme Alert has called into question the basis for and the ethical standards of the Direct Selling Asssociation's (DSA) defense of the multi-level marketing company, Herbalife. The DSA' s president, Joseph Mariano, issued a statement in March that a request for an FTC investigation of Herbalife by the National Consumers League and various Wall - [Wall Street Investor Accuses Herbalife of Running Pyramid Scam](https://www.pyramidschemealert.org/wall-street-investor-accuses-herbalife-of-running-pyramid-scam/) - In a remarkable new development, a major Wall Street Hedge Fund has entered the movement to reveal the truth about multi-level marketing. Aiming at one of the MLM industry's icon's, Herbalife, Hedge Fund owner, Bill Ackman of Pershing Square Capital Management, delivered a 300+ slide presentation to top investors and analysts. He charged that Herbalife is - [2012 Round-Up: Crimes, Misdemeanors and Charges in Multi-Level Marketing](https://www.pyramidschemealert.org/2012-round-up-crimes-misdemeanors-and-charges-in-multi-level-marketing/) - In 2012, there were several publicized events that, along with other similar events over the least several years, indicate pervasive fraud in the multi-level marketing field and call out for a new and comprehensive investigation of this industry by regulators at the FTC, SEC, state Attorneys General and the new Consumer Financial Protection Bureau (CFPB): - [Judge: Whistle Blower Can Call Nu Skin a Pyramid Scheme](https://www.pyramidschemealert.org/judge-whistle-blower-can-call-nu-skin-a-pyramid-scheme/) - A state judge in Utah modified an earlier decision and now has ruled that a prominent Nu Skin whistle-blower is legally allowed to call that company an illegal pyramid scheme, based on the whistle-blower's analysis, direct experience and knowledge of the Nu Skin business. The ruling is a victory for free speech and a setback - [Is Wall Street Waking Up To MLM's Flawed Business Model?](https://www.pyramidschemealert.org/is-wall-street-waking-up-to-mlms-flawed-business-model/) - A highly unusual event occurred in May, 2012 that drastically affected businesses and individuals who invest in the stocks of multi-level marketing (MLM) companies. A hedge fund manager – who is famous for rigorous research, uncanny insight into future trends and for selling "short" the companies that he thinks are unsustainable – publicly asked a few pointed - [Nu Skin Facing the Ultimate Whistle-Blower](https://www.pyramidschemealert.org/nu-skin-facing-the-ultimate-whistle-blower/) - According to investigative journalists and corporate intelligence professionals, multi-level marketing (MLM) companies are unique in the business world for extreme secrecy, a "need to know only" communication network, and a strict code of silence toward outsiders. Ex-employees and ex-distributors seldom have useful information, often admitting they know nothing about the company's inner workings or even understand - [Half of Amway's Products Are Retailed. Really! Plus Other Wacky Numbers](https://www.pyramidschemealert.org/half-of-amways-products-are-retailed-really-plus-other-wacky-numbers/) - In a recent video interview with Amway executives, Doug DeVos and Steve Van Andel, a Wall Street Journal reporter asked them a probing and revealing question. In fact, before the interview, the reporter for the Wall Street Journal emailed Pyramid Scheme Alert to ask for questions to pose to Amway's top executives. The question that - [Newspaper Series Explores Cult Connection to MLM, NXIVM](https://www.pyramidschemealert.org/newspaper-series-explores-cult-connection-to-mlm-nxivm/) - The lethal combination of cult and pyramid in a multi-level marketing company was vividly explored in a recent newspaper series on the multi-level marketing company, NXIVM (pronounced like the acid reflux “purple” pill). The four-part series in the Albany Times Union by James M. Odato and Jennifer Gish chronicles lawsuits, accusations of sexual abuse of - [A European Court Rules: "Herbalife Is an Illegal Pyramid Scheme"](https://www.pyramidschemealert.org/a-european-court-rules-herbalife-is-an-illegal-pyramid-scheme/) - There are two icons of MLM that represent all the others of that "industry". They are among the oldest and largest MLMs, and they have spread to most other countries worldwide. One is Amway. The other is Herbalife. Herbalife has just been ruled an illegal pyramid scheme by a court in Belgium. A case had - [Texas AG Forces MLM, Fortune High Tech Marketing, to Pay Refunds ](https://www.pyramidschemealert.org/texas-ag-forces-mlm-fortune-high-tech-marketing-to-pay-refunds/) - Fortune High Tech Marketing (FHTM), the darling of the multi-level marketing industry when it was launched by former recruiters of the bankrupt MLM, Excel Communications, has been hit by regulators in yet another state. Texas consumers who were involved in the scheme may be entitled to refunds, totalling more than $1.3 million. The company has - [FTC: Line between MLM and Pyramid Fraud too Complex to Regulate ](https://www.pyramidschemealert.org/ftc-line-between-mlm-and-pyramid-fraud-too-complex-to-regulate/) - The staff of the Federal Trade Commission (FTC) has reversed its earlier position on the need to regulate multi-level marketing and has now recommended exempting all MLMs from a proposed "business opportunity rule." This means MLMs will have no rules requiring disclosure of income averages, recruiting requirements, saturation, failure rates, or business costs when recruiters - [How to Use This site](https://www.pyramidschemealert.org/how-to-use-this-site/) - Click the Search tab above for news, companies, key words, etc. Learn about current developments, court cases and prosecutions or check the ARCHIVES. Understand MLMs, Pyramids and Ponzis from articles and research reports in the NEWS, RESOURCES and PYRAMID SCHEMES tabs. Stay Informed. Receive Updates, Read the Blog, or Follow the Links for Additional Information - [Welcome to the Updated Site](https://www.pyramidschemealert.org/welcome-to-the-updated-site/) - Welcome to the updated and improved Pyramid Scheme Alert website. We hope you'll find it easier to navigate and to search. Although our appearance has changed, we still have the in-depth news and information about pyramid schems that you've come to expect. All the old material is still accessible in the archives as well. This - [What About This One? Free Audio Report](https://www.pyramidschemealert.org/what-about-this-one-free-audio-report/) - How do you tell the difference between legitimate direct selling and pyramid recruitment schemes? Many -- too many -- are financial traps, but which ones? This free audio and written report provides the tools and facts you need to spot the scams. Get it now. * indicates required Email Address * First Name - [Is Social Security a Ponzi Scheme? Pyramid Scheme Alert Answers: NO!](https://www.pyramidschemealert.org/is-social-security-a-ponzi-scheme-pyramid-scheme-alert-answers-no/) - Since its founding 11 years ago, Pyramid Scheme Alert has battled an epidemic of Ponzi and Pyramid Schemes in the USA and internationally. The schemes operate as multi-level marketing, home-based businesses, gifting clubs, investment schemes, buying clubs and under other disguises. Our Directors, Advisers and supporters have researched and analyzed pyramid schemes and have worked - [Is Social Security a Ponzi Scheme?](https://www.pyramidschemealert.org/is-social-security-a-ponzi-scheme/) - By Robert L. FitzPatrick, President of Pyramid Scheme Alert, with the Assistance of Pyramid Scheme Alert Directors and Advisors. A presidential candidate charges that the American Social Security system is a “Ponzi scheme” not long after the largest Wall Street Ponzi scheme in history collapsed and wiped out pensioners and charities. Pundits loudly argue the - [Has MLM Corrupted Avon?](https://www.pyramidschemealert.org/has-mlm-corrupted-avon/) - Avon has long been, and is today, the pillar that holds up the credibility of the direct selling industry. It has unintentionally lent legitimacy to multi-level marketing (MLM) schemes that sold outrageous health scams, some that were sued by financially ruined consumers and others that were shut down by regulators for pyramid fraud. By their - [Federal Court Decision May Allow Restitution to Some Victims of MLM, YTB](https://www.pyramidschemealert.org/federal-court-decision-may-allow-some-ytb-victims-to-seek-restitution/) - A three judge federal panel has overturned an earlier ruling by a federal judge, thus giving new life to a class action lawsuit against the multi-level marketing scheme, Your Travel Biz.com (YTB). The class action lawsuit stated, "The defendant corporations have taken over half a billion dollars from their unsophisticated customers, selling them on the - [Music MLM, BurnLounge, Ruled Illegal Pyramid by Fed Court, Finally ](https://www.pyramidschemealert.org/music-mlm-burnlounge-ruled-illegal-pyramid-by-fed-court-finally/) - Federal Trade Commission (FTC) officials invested four years in seeking a verdict from a federal court on their charge that the multi-level marketing (MLM) company, BurnLounge, Inc. was an illegal pyramid scheme. Finally, on July 1, 2011, the verdict came in: Guilty! Read an Analysis of this important federal court decision... - [Like Donald Trump's Hair, ACN May Not Be What It Appears To Be](https://www.pyramidschemealert.org/like-donald-trumps-hair-acn-may-not-be-what-it-appears-to-be/) - State regulators and television news media have recently shined a light on what many people thought was one of America's fastest growing multi-level marketing companies, ACN, based in North Carolina. ACN's great claims to fame and legitimacy have been its reputed fast growth and its television endorsements by celebrity, Donald Trump. But new developments and - [FTC Neglect and Corruption](https://www.pyramidschemealert.org/ftc-neglect-and-corruption/) - Consumer Report Now Available: The Main Street Bubble The new report from Pyramid Scheme Alert, "The Main Street Bubble: A Whistle Blower's Guide to Business Opportunity Fraud; How the FTC has Ignored and Now Protects It" is now available to the public at no charge. If you have an interest in seeing this report, email - [Analysis: Amway Accused of Fraud; Pays $150 Million; Where's the FTC and DOJ?](https://www.pyramidschemealert.org/analysis-amway-accused-of-fraud-pays-150-million-wheres-the-ftc-and-doj/) - Amway is the largest, oldest and best known representative of "multi-level marketing" (MLM). It is the most prominent member of the Direct Selling Association. This icon of "direct selling" just announced that it has agreed to pay restitution to consumers and reform costs estimated at over $150 million. The payments are in response to consumer - [Canadian Police Bring Criminal Fraud Charges against MLM, Business in Motion ](https://www.pyramidschemealert.org/canadian-police-bring-criminal-fraud-charges-against-mlm-business-in-motion/) - Royal Canadian Mounted Police (RCMP) in the province of Manitoba in central Canada have brought criminal fraud charges against a prominent multi-level marketing company, its president and 12 of its promoters. The prosecution is a clear warning to any consumer about the risks of joining or recruiting for a multi-level marketing company. Previous lack of - [Seven Gifting Scheme Women Charged with Felonies -- Millions More at Large?](https://www.pyramidschemealert.org/seven-gifting-scheme-women-charged-with-felonies-millions-more-at-large/) - A Michigan newspaper reports that "seven Newaygo County women have been arraigned… on felony charges in connection with a pyramid scheme targeting women." The article states that the women are facing charges of pyramid chain promotions, which carries up to a seven-year sentence and a $10,000 fine. These are not necessarily ringleaders, it reports. Each one - [Atlanta Newspaper Examines MLM Scheme, Stream Energy/Ignite](https://www.pyramidschemealert.org/atlanta-newspaper-examines-mlm-scheme-stream-energyignite/) - In a feature report, a major metropolitan newspaper, the Atlanta Journal-Constitution, examined the MLM scheme, Stream Energy/Ignite, focusing on the question of whether the company is operating a disguised pyramid scheme. Stream is a reseller of utility services, gas and electricity, and operates in several states. Ignite is the multi-level marketing sales division. The company - [MLM, Fortune High Tech, Reportedly Investigated by NC Attorney General](https://www.pyramidschemealert.org/mlm-fortune-high-tech-reportedly-investigated-by-nc-attorney-general/) - The MLM scheme, Fortune High Tech Marketing (FHTM), is now the target of an investigation by the North Carolina Attorney Generals Office, according to an article in the Wilmington, NC-based newspaper, Star News. The article notes that this company has already been prosecuted by state regulators in North Dakota and Montana and that it faces - [Consumer Class Action Suit Against MLM, Stream/Ignite, May Go Forward](https://www.pyramidschemealert.org/consumer-class-action-suit-against-mlm-streamignite-may-go-forward/) - Once again, a court has ruled against an MLM's "binding arbitration" contract as a shield against consumer lawsuits. The recent ruling against the MLM, Stream/Ignite, may enable a current consumer lawsuit to proceed. Like all other MLMs, Stream/Ignite used the arbitration clause to argue that consumer victims had no legal right to sue in court. - [Analysis: Montana/ACN Settlement Displays the MLM Loophole, Once Again](https://www.pyramidschemealert.org/analysis-montanaacn-settlement-displays-the-mlm-loophole-once-again/) - The state of Montana played David against the multi-level marketing (MLM) Goliath, ACN, when it recently accused that company of operating a pyramid scheme. ACN's boastful promoter is the millionaire, Donald Trump, and the scheme's product, a video phone, is promoted on Trump's national TV show. ACN claims to have 200,000 sales reps worldwide. Montana - [Montana vs. ACN, a David and Goliath Battle](https://www.pyramidschemealert.org/montana-vs-acn-a-david-and-goliath-battle/) - Montana is a very large state with a famously big sky and vast natural resources, but in terms of consumer protection against the likes of the MLM scheme, ACN, it is a David facing off with a financial Goliath. Montana's state securities commission is charging ACN with operating a pyramid scheme. It is seeking to - [MLM Scheme, ACN, Charged with Operating Pyramid Scheme](https://www.pyramidschemealert.org/mlm-scheme-acn-charged-with-operating-pyramid-scheme/) - The MLM scheme, ACN has been charged with operating as an illegal pyramid scheme by regulators in Montana. The charges brought by the state securities commissioner are depressingly familiar. They describe a predatory recruitment program based on outrageously false income claims and documented financial losses by the vast majority of all participants. The regulators' charge - [Class Action Lawsuit Calls MLM, Fortune High Tech Marketing, an Illegal Pyramid](https://www.pyramidschemealert.org/class-action-lawsuit-calls-mlm-fortune-high-tech-marketing-an-illegal-pyramid/) - One of the country's fastest growing "direct selling" companies, called Fortune High Tech Marketing, was recently prosecuted by the state of Montana for operating an illegal pyramid scheme. Now, a group of distributors for the scheme has sued it, making essentially the same claims as the Montana regulators did. They are asking for restitution for - [New Consumer Protection Law Could Regulate MLMs](https://www.pyramidschemealert.org/new-consumer-protection-law-could-regulate-mlms/) - Following the greatest financial meltdown and epidemic of financial fraud in America’s history, the United States Congress enacted a sweeping new financial reform law, the Wall Street Reform and Consumer Protection Act of 2010. The new law creates the new Consumer Financial Protection Bureau. Beyond the obvious financial and investor products, the new law could - [Wife of Bank of America's Former CEO Admits to MLM Recruiting](https://www.pyramidschemealert.org/wife-of-bank-of-americas-former-ceo-admits-to-mlm-recruiting/) - Charlotte, NC…Wife of Bank of America's Former CEO Admits to MLM Recruiting for an MLM Prosecuted in Two States, and in which nearly All Consumers Lose Money According to the local NBC affiliate television news channel in Charlotte, North Carolina, "Several prominent Carolinians, including the wife of former Bank of America CEO Ken Lewis, have - [Ponzis and Pyramids](https://www.pyramidschemealert.org/ponzis-and-pyramids/) - New Audio Series Focuses on "Main Street" Ponzis and Pyramid Schemes (downloadable MP3) December, 2009 Pyramid Scheme Alert has launched an audio documentary focused on Main Street Ponzis, such as multi-level markerting, aka MLM or Network Marketing, cash gifting schemes, and other "business opportunity" scams. In recent years, light has finally come to Wall Street’s - [Canadian MLM, Business in Motion, Appears Doomed](https://www.pyramidschemealert.org/canadian-mlm-business-in-motion-appears-doomed/) - The long and sad story of the Canadian MLM scheme, Business in Motion (BIM), may finally be ending. The scheme has sent letters to its investors (salespeople), announcing it may be closing down. As in all such schemes, the actual percentage of losers (nearly all lose) was pre-determined from the start. The closing only lays - [Regulators Charge Fortune Hi-Tech Marketing](https://www.pyramidschemealert.org/regulators-charge-fortune-hi-tech-marketing/) - Fortune High Tech Marketing Charged with Illegal Operations in Two States April, 2010 Update: The MLM scheme, Fortune High Tech Marketing, was ordered in '09 to stop doing business in the state of North Dakota by state regulators. FHTM is one of fastest growing new versions of "endless chain" recruitment schemes based in the USA. Promoters - [Finland Hit by Madoff-Style Ponzi Scheme](https://www.pyramidschemealert.org/finland-hit-by-madoff-style-ponzi-scheme/) - August, 2009 Finland has recently discovered that thousands of its citizens were duped in a near clone of Charles Ponzi's original scam and a close relative of Bernard Madoff's. The scam in Finland was originally called WinClub, but after some negative publicity and inquiries, changed its name to WinCapita. The scheme ran for more than - [MLM Scheme Sued in Texas](https://www.pyramidschemealert.org/mlm-scheme-sued-in-texas/) - Stream Energy in Texas, Sued for Operating a "Pyramid Scheme" August, 2009 The Texas-based MLM, Stream Energy, which sells gas and electric utility services in Texas and Georgia, has been sued for operating a pyramid scheme. The civil suit, which is seeking class action status, claims that Stream Energy misrepresents income potential, misleads consumers to - [Gold Quest Leaders Arrested in Iran](https://www.pyramidschemealert.org/gold-quest-leaders-arrested-in-iran/) - December, 2009 Iran joins other countries in efforts to protect citizens from multi-level marketing(MLM) scams. The MLM scheme, Gold Quest, which was a knock-off of the former US-based MLM scheme, Gold Unlimited, was banned in Iran in 2005. It has also been prosecuted in India and Sri Lanka. Yet, like many similar MLM schemes, it - [Canadian Class Action Suit Against Amway](https://www.pyramidschemealert.org/canadian-class-action-suit-against-amway/) - Canadian Consumers File Class Action Lawsuit Against Amway, Charging Deception and Pyramid Scheme November, 2009 A new class action lawsuit has been filed against Amway in Canada. Though unconnected to the recently released book by Eric Scheibeler, the new lawsuit asserts the very same charges against Amway in Canada that are detailed in the book: - [Federal Judge Rules that Herbalife Can Stand Trial](https://www.pyramidschemealert.org/federal-judge-rules-that-herbalife-can-stand-trial/) - Former high level Herbalife distributors have charged that Herbalife is an illegal pyramid scheme -- a fraud. Herbalife tried to get the charges dismissed. Now a federal judge has ruled that the charge is worthy of a trial. The case could be devastating for Herbalife and many other MLM schemes. - [Pre-Paid Legal Hit with SEC Subpoena](https://www.pyramidschemealert.org/pre-paid-legal-hit-with-sec-subpoena/) - October, 2009 The MLM, Pre-Paid Legal, has been served a subpoena from the Securities & Exchange Commission (SEC) demanding documents related to its treasury stock repurchase program, marketing practices, membership information, and disclosure practices, among other matters. Pre-Paid's stock plummeted more than 20% when the news became known. Read More - [China Leads New Crackdown on MLM Frauds](https://www.pyramidschemealert.org/china-leads-crackdown-on-mlm/) - China Leads the World in Battling Illegal (USA-stlye) MLMs; New Crackdown on the Frauds" September, 2009 China is battling American-style MLM's with armed police, arrests and public education. A new consumer organization has been formed to help consumers break free of MLM's cult-like powers that employ lies and false promises. A new book has been - [BBB Warns IJango Is a Pyramid Scheme](https://www.pyramidschemealert.org/bbb-warns-ijango-is-a-pyramid-scheme/) - 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 - [Own My Travel Sued by SEC ](https://www.pyramidschemealert.org/own-my-travel-sued-by-sec/) - Florida-based MLM, Own My Travel, Is Sued by SEC for Operating a Pyramid Scheme August, 2009 A small MLM in Florida called Own My Travel has been sued by the Securities and Exchange Commission for operating a pyramid scheme and selling unregistered securities. The scheme claimed it is a typical MLM and that it offers - [MLM Travel Scheme May Be Finished Off by State Regulators](https://www.pyramidschemealert.org/mlm-travel-scheme-may-be-finished-off-by-state-regulators/) - May, 2009 California state regulators are doing what the Federal Trade Commission (FTC) will not do – protect the public from pyramid selling scams, also called “business opportunity frauds.” The latest example is the scheme, Your Travel Biz.com, a classic pyramid in which consumers buy the right to become “travel agents” and then make money - [Mannatech Pays Millions to Victims](https://www.pyramidschemealert.org/mannatech-pays-millions-to-victims-in-state-prosecution-of-false-marketing/) - State of Texas Prosecutes for False Marketing March, 2009 Mannatech Inc. will pay $6 million and its founder will pay $1 million to settle the Texas attorney general's allegations that the company made false claims about the health benefits of its vitamins and supplements. Read the Settlement... - [Multi-Level Marketing Exploits Recession](https://www.pyramidschemealert.org/multi-level-marketing-exploits-recession-promises-safe-haven-and-financial-rescue/) - Promises "Safe Haven" and Financial Rescue May, 2009 Unemployment is rising. Loans are hard to get. Foreclosures are skyrocketing; small business owners are closing their doors. Into this sad situation comes multi-level marketing (MLM), claiming to offer consumers a "fall back" or rescue. They call it "direct selling" and they claim it is "recession-proof." The - [Study of Ten Major MLMs and Amway/Quixtar](https://www.pyramidschemealert.org/study-of-ten-major-mlms-and-amwayquixtar/) - Shows Huge Consumer Losses and Pyramid Recruitment June 2008 A statistical analysis of income disclosures made by 10 major multi-level marketing (MLM) companies and the largest of all MLMs, Amway/Quixtar, reveals that, on average, 99% of all participants received less than $10 a week in commissions, before all expenses. Additionally, the report shows that on - [Product-Based Pyramid Schemes:](https://www.pyramidschemealert.org/product-based-pyramid-schemes/) - When Should an MLM or Network Marketing Program Be Considered an Illegal Pyramid Scheme? REPORT ABSTRACT by Jon M. Taylor, PhD October 15, 2004 One of the most problematical of business models is multi-level or network marketing (MLM ). Many MLM programs show all the effects and characteristics of a pyramid scheme, but the MLM - [Gifting Schemes](https://www.pyramidschemealert.org/gifting-schemes/) - Gifting Scheme Mathematical Progression The "Original Dinner Party" New Wrappings for Old Gift Who Joins Gifting Schemes? - [The Penny-Stock Pyramid Scheme](https://www.pyramidschemealert.org/the-penny-stock-pyramid-scheme/) - (and its Similarity to Multi-Level Marketing Pyramids) Each era has its own business hoax. The schemes develop in good times and bad and adapt to the special conditions of each era. With the benefit of experience and hindsight, the hoaxes appear obviously as frauds, but in the context of their period, they are seen as - [Pyramid Schemes](https://www.pyramidschemealert.org/pyramid-schemes/) - The Result of Pyramid Schemes The scale of harm is enormous, with millions of people affected and billions of dollars stolen. The weak and the vulnerable are set upon with trickery, loopholes in laws and psychological manipulation. A growing proportion of victims are in Third World countries where poverty, desperation or naive hope are in ## Pages - [Home](https://www.pyramidschemealert.org/) - The first international organization to expose, study and prevent pyramid schemes. - [Articles](https://www.pyramidschemealert.org/more-resources/articles/) - 10 Big Truths about Multi-Level Marketing Truths - hidden, obscured and denied - written in a clear and succinct style to reveal the reality of MLM and explode the myths, lies and marketing lures. In downloadable booklet format. READ What Is this Thing Called Multi-Level Marketing ? This newest article by Robert L. FitzPatrick presents a - [Audio, Video and Podcasts](https://www.pyramidschemealert.org/more-resources/audiovideo-toolspodcasts/) - Ponzinomics101 A 10-part audio podcast, (each segment is brief) on the fundamentals multi-level marketing, pyramid schemes and direct selling, an immunization against falling victims to MLM traps, and to help friends or family being lured. Primer on Pyamid Schemes (6-minute animated video) Among the most common questions received by Pyramid Scheme Alert are "how can I recognize a - [Ponzis and Pyramids, the Audio Series](https://www.pyramidschemealert.org/more-resources/audiovideo-toolspodcasts/ponzis-and-pyramids-the-audio-series/) - Ponzis and Pyramids is a consumer education audio series examining multi-level marketing and revealing the similarities between Wall Street Ponzis and Main Street Pyramids. Ponzis and Pyramids is sponsored by Pyramid Scheme Alert and supported by donations from dedicated consumer activists, attorneys, and authors. Chapter One: Dare Not Say Its Name From the first - [Resources](https://www.pyramidschemealert.org/more-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 - [Links to MLM Information WebSites/Blogs](https://www.pyramidschemealert.org/more-resources/links-to-mlm-information-sites/) - As in the cases of Enron, the cigarette industry, bank and mortgage fraudsters and the Madoff ponzi scheme, the truth takes time to emerge but it inevitably does prevail. These links refer to sites, which are not owned by or under the control of Pyramid Scheme Alert, and are provided for informational purposes. Blog or - [About](https://www.pyramidschemealert.org/about-2/) - Enough Is Enough. It's Time for Action! Pyramid Scheme Alert is the first consumer organization to confront the abuses and trickery of companies known as "multi-level marketing." Pyramid Scheme Alert is an independent, non-profit, non-commercial (no ads or corporate sponsors, no merchandise sales) consumer campaign. It is privately supported (by memberships and donations), and is - [Books and Pamphlets](https://www.pyramidschemealert.org/more-resources/books-and-pamphlets/) - Books PONZINOMICS, The Untold Story of Multi-Level Marketing, by Robert L. FitzPatrick The only book published that covers the phenomenon of multi-level from its invention to today's global spread, including how it operates as a disguised pyramid scheme and delusional cult, escapes criminal law enforcement, and harms the fabric of social relationships. FALSE PROFITS: Seeking - [Robert FitzPatrick](https://www.pyramidschemealert.org/about-2/board-of-directors/robert-fitzpatrick/) - Robert FitzPatrick, President Robert L. FitzPatrick is the author of the book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020), the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick served as expert or consultant in more than 40 court cases involving pyramid - [Board of Directors](https://www.pyramidschemealert.org/about-2/board-of-directors/) - Robert FitzPatrick, President Robert L. FitzPatrick is the author of the book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020), the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick served as expert or consultant in more than 40 court cases involving pyramid - [Receive Free Email Updates from Pyramid Scheme Alert](https://www.pyramidschemealert.org/receive-free-email-updates-from-pyramid-scheme-alert/) - Stay Informed Receive Updates, News and Action Alerts. The PSA Update is free. Your name and contact information will never be shared with other parties. Updates are unscheduled, sent just a few times a year. Each year, five million Americans - and millions more worldwide - fall victim to multi-level marketing recruitment schemes. Others are - [Mission Statement](https://www.pyramidschemealert.org/about-2/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 - [Advisory Board](https://www.pyramidschemealert.org/about-2/advisory-board/) - Stephen Barrett, M.D. Pres., MLMWatch.org and QuackWatch.com Chapel Hill, NC, USA Douglas Brooks Attorney, expert in pyramid schemes and franchises Brookline, MA Tracy Coenen, CPA, CFE Pres. of Sequence, Inc., a Fraud Investigation Company, Publisher of PinkTruth.com, A Consumer Education website focused on the business and recruiting practices of the MLM Company, Mary Kay Bruce - [Analytical Tools, Research and Analysis](https://www.pyramidschemealert.org/more-resources/analytical-tools-research-and-analysis/) - Analysis: Financial Crisis – a Mirror Image of MLM The most frequently read Blog in the False Profits Blog series. This article shows how the multi-level marketing system of “endless chain” recruiting employs the same methods, uses the same deceptions and produces the same devastating results as the real estate/mortgage/banking/Wall Street crisis caused. A must-read - [Latest News](https://www.pyramidschemealert.org/latest-news/) - 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 - [What About This One?](https://www.pyramidschemealert.org/what-about-this-one-signup/) - [Here's Your Free Report](https://www.pyramidschemealert.org/welcome-signup-3/) - Hi, This is Robert FitzPatrick, president of Pyramid Scheme Alert. When you click on the link below you’ll have immediate access to the free report, “What About this One?.” It includes an audio interview and a fact filled report. The audio is powerful and engaging. In plain language, Eric Scheibeler and I pinpoint the telltale - [Now Available](https://www.pyramidschemealert.org/welcome-signup-2/) - "What About This One?" A Free Audio and Written Report Thanks for sending for the free audio and written report, “What About This One?” In just a few minutes, you'll receive an email from me asking you to click a link to confirm your request. (If you don't get that very shortly, please check your - [What About This One?](https://www.pyramidschemealert.org/what-about-this-one-2/) - Now Available "What About This One?" A Free Audio and Written Report How do you tell the difference between legitimate direct selling and pyramid recruitment schemes? There are hundreds of “direct selling” and “network marketing” schemes. Many — too many — are financial traps, but which ones? This free audio and written report provides the ## Categories - [Featured](https://www.pyramidschemealert.org/category/featured/) - [News](https://www.pyramidschemealert.org/category/news/) - [Pyramid Schemes](https://www.pyramidschemealert.org/category/pyramid-scheme/) - [MLM](https://www.pyramidschemealert.org/category/pyramid-scheme/mlm-scheme/) - [Gifting](https://www.pyramidschemealert.org/category/pyramid-scheme/gifting/) - [Investment](https://www.pyramidschemealert.org/category/pyramid-scheme/investment/) - [PSA in the Media](https://www.pyramidschemealert.org/category/news/psa-media/) - News stories about PSA - [Scheme Alerts](https://www.pyramidschemealert.org/category/pyramid-scheme/scheme-alerts/) - [Legal](https://www.pyramidschemealert.org/category/news/legal/) - News about pyramid-scheme related lawsuits and legal decisions. - [False Profits](https://www.pyramidschemealert.org/category/false-profits/) - [Economics / Financial](https://www.pyramidschemealert.org/category/false-profits/economics-financial/) - 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