Mission Statement
In recent decades, pyramid schemes have become an insidious, pervasive and corrupting influence in the marketplace and community, causing financial and social harm on a global scale.
Since 1980 a new form of sales and marketing, called multi-level marketing or network marketing, has spread worldwide and spawned an explosion of pyramid sales schemes involving tens of millions of consumers. The line between legal forms of network marketing and fraudulent pyramid programs is a point of Read More…
Enough Is Enough. It’s Time for Action!
No more denial, shame or embarrassment. No more confusion. No more blaming the victim. No more resignation. And absolutely no more fear.
Pyramid Scheme Alert is the first consumer organization to confront the abuses and trickery of pyramid scheme perpetrators.
Pyramid Scheme Alert is a non-profit, privately supported (by memberships and donations), all-volunteer,
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Resources
Despite the volume of lies and hype flowing from multi-level marketing schemers there is more valid, research-based and whistle-blower information available today than ever before. The truth is emerging.
As in the cases of Enron, the lethal cigarette industry, bank and mortgage frauds and the Madoff ponzi scheme, the truth about multi-level marketing is taking time to emerge but the truth inevitably prevails. As the Links offered here show, the number of activists is growing. Major Read More…
Consumer Report Now Available:
What is this Thing called Multi-Level Marketing?
This new article by Robert L. FitzPatrick is an economic “portrait” of multi-level marketing (MLM) in the USA. The report has compiled and analyzed the data on three of the oldest and largest MLM companies, Amway, Herbalife and Nu Skin in a readable and understandable way to paint a recognizable picture. Together, these three constitute 10% of the entire MLM operations in America and serve as representatives of all others. About 1.5 million Americans are signed up in them each year. Most quit within a year. The report shows shocking loss rates among participants and an extreme transfer of money to the 1% at the top. The study also examines the potential for “retail” sales by distributors, which turn out to be non-existent. Finally, the report examines the financial chances of success of a new recruit joining any of the three today.
If you have an interest in seeing this report, contact us.
Recent Articles
MLM and Crypto, Unsurprisingly Similar
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...
India’s Money Laundering Case against Amway Breaks New Ground in Enforcement and Revealing 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...
Amway Charged with Massive Money Laundering Scheme in India
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...
Activists Ask: How to Comment on FTC’s “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...
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...
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...