Comments on the FTC’s Proposed Business Opportunity Rule
July 1, 2006 by

Attn: Federal Trade Commission Office of the Secretary, Room H-135 (Annex W) 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir/Madam: I am writing in response to the proposed New Business Opportunity Rule R511993, which is sorely needed to protect consumers from deceptive pyramid marketing schemes and chain selling schemes …

How to Identify a Product-Based Pyramid Scheme (“Recruiting MLM”)
February 12, 2003 by

Multilevel companies that are based on profits from recruiting rather than retailing should be regarded as pyramid schemes or “recruiting MLMs.” This article describes five ways to distinguish them from “retail MLMs” in which the company pays generously for retailing products without recruiting a large downline. “Recruiting MLMs” typically display five features: 1. Recruiting of …