Amway, Is it the greatest con game since the shell game?
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more levels of recruits, known as the distributor’s downline. While some MLM schemes are supposedly legitimate, if a plan offers to pay commissions for recruiting new distributors, it likely is illegal. Most states outlaw this practice, which is known as pyramiding. State laws against pyramiding say that a multilevel marketing plan should pay commissions only for retail sales of goods or services, not for recruiting new distributors. Pyramiding is prohibited because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. When a plan collapses, most people, except perhaps those at the very top of the pyramid, lose their money.Original Source: Los Angeles Times, April 27, 1999.”
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