Why isn't Multi level marketing illegal?

[whm1974]

I just finished watching this video about MLM by Rachel Oats warning people not to get involved in making money for MLM companies instead of themselves.
https://www.youtube.com/watch?v=Q9gfBO9sqpc

I quickly figured out that MLM is a just legalized scam that is only legal due to various loopholes in my late teens after several attempts to hook and reel me in.

Trying to earning a living or make money by MLM only works for those at the top, while almost everyone else ends up making less then minimal wage and heavily in debt. And ruin close relationships on top of that.

Not only should governments close these legal loopholes but do an outright ban of Multi level Marketing.

 

[zinfamous]

Because pyramid schemes are illegal. All you need to do is change your pyramid scheme to something called MLM, refuse to acknowledge that it is the same thing, especially after you describe your model as, exactly, a pyramid scheme. It's even in the fricking name.

But other than that, I have no idea.

 

[hal2kilo]

I just finished watching this video about MLM by Rachel Oats warning people not to get involved in making money for MLM companies instead of themselves.
https://www.youtube.com/watch?v=Q9gfBO9sqpc

I quickly figured out that MLM is a just legalized scam that is only legal due to various loopholes in my late teens after several attempts to hook and reel me in.

Trying to earning a living or make money by MLM only works for those at the top, while almost everyone else ends up making less then minimal wage and heavily in debt. And ruin close relationships on top of that.

Not only should governments close these legal loopholes but do an outright ban of Multi level Marketing.

Because we have, especially now, buyer beware capitalism.

 

[blackangst1]

https://www.quora.com/Why-are-MLM-c...-they’re-an-incarnation-of-the-pyramid-scheme

In 1979 a landmark case, FTC vs Amway, concluded that multi-level marketing (MLM), now more commonly called network marketing or direct sales, was a legitimate business opportunity and not a pyramid scheme.

Other relevant info in that page-

 

[realibrad]

Don't listen to idiots that say this is capitalism or any other ism.

MLM is legal because its right on the line legally. For MLM to be legal, you have to be able to make money beyond recruiting people. Technically, you could make money by selling a product, and many actually do in some systems. That is what makes it legal.

I'm assuming someone is trying to get you into one. Don't do it. Find something that has more structure. Avoid sales positions as its too erratic for your situation.

 

[zinfamous]

Don't listen to idiots that say this is capitalism or any other ism.

MLM is legal because its right on the line legally. For MLM to be legal, you have to be able to make money beyond recruiting people. Technically, you could make money by selling a product, and many actually do in some systems. That is what makes it legal.

I'm assuming someone is trying to get you into one. Don't do it. Find something that has more structure. Avoid sales positions as its too erratic for your situation.

I've always thought that if MLM were explicitly made illegal, that then many religious institutions would suddenly be on shaky ground, lol. Scientology is certainly right out, then maybe it snowballs from there.

 

[whm1974]

Don't listen to idiots that say this is capitalism or any other ism.

MLM is legal because its right on the line legally. For MLM to be legal, you have to be able to make money beyond recruiting people. Technically, you could make money by selling a product, and many actually do in some systems. That is what makes it legal.

I'm assuming someone is trying to get you into one. Don't do it. Find something that has more structure. Avoid sales positions as its too erratic for your situation.

No one as yet is trying do as such but I watch Rachel Oats YouTube channel from time to time.

 

[realibrad]

I've always thought that if MLM were explicitly made illegal, that then many religious institutions would suddenly be on shaky ground, lol. Scientology is certainly right out, then maybe it snowballs from there.

That might very well be true, and if it were to happen then that is pro.

 

[whm1974]

I've always thought that if MLM were explicitly made illegal, that then many religious institutions would suddenly be on shaky ground, lol. Scientology is certainly right out, then maybe it snowballs from there.

Religious institutions should be held just as accountable for their actions just like everyone is.

 

[realibrad]

No one as yet is trying do as such but I watch Rachel Oats YouTube channel from time to time.

This guy just tried to make that argument.

Because we have, especially now, buyer beware capitalism.

 

[zinfamous]

That might very well be true, and if it were to happen then that is pro.

Something tells me that has been the "hidden" argument behind a lot of pro-lawyering at the federal level, that has struggled to keep these scams semi-legal, if only because of the shit-storm that necessarily-detailed legal speak would unleash under such a statute.

 

[realibrad]

Something tells me that has been the "hidden" argument behind a lot of pro-lawyering at the federal level, that has struggled to keep these scams semi-legal, if only because of the shit-storm that necessarily-detailed legal speak would unleash under such a statute.

I mean, it still goes back to money. Many "churches" like Scientology are about money and power anyway.

 

[Amused]

Mainly because of religion. The vast majority of MLMs are tied to religions. The minute they are under scrutiny, they scream religious intolerance! That, and MLMs are literally cults.

 

[whm1974]

Something tells me that has been the "hidden" argument behind a lot of pro-lawyering at the federal level, that has struggled to keep these scams semi-legal, if only because of the shit-storm that necessarily-detailed legal speak would unleash under such a statute.

I wonder if state or local governments started warning people about those legal scams the Feds will tell them to stop?

 

[whm1974]

Mainly because of religion. The vast majority of MLMs are tied to religions. The minute they are under scrutiny, they scream religious intolerance! That, and MLMs are literally cults.

I have noticed MLM schemes are provident among fundies.

 

[Zorba]

I have noticed MLM schemes are provident among fundies.

Because they lack critical thinking skills and they are overly trusting of charismatic salesmen.

 

[whm1974]

Because they lack critical thinking skills and they are overly trusting of charismatic salesmen.

Critical Thinking classes and the like should be Mandatory in schools.

 

[Zorba]

Critical Thinking classes and the like should be Mandatory in schools.

I am pretty sure it is part of common core. Which is one of the reasons fundies hate it so much.

 

[whm1974]

I am pretty sure it is part of common core. Which is one of the reasons fundies hate it so much.

I wonder if fundies will disappear in the future?

 

[whm1974]

Well I found this site that warns of MLM schemes.
https://www.mlmwatch.org/

 

[IronWing]

Separating fools and money is a social positive. It means that fools have fewer resources to allocate foolishly.

 

[Jhhnn]

Why? So that Eric Prince, Betsy DeVos & others can inherit vast fortunes.

 

[whm1974]

Separating fools and money is a social positive. It means that fools have fewer resources to allocate foolishly.

No it is not. It also means that said fools have less money to meet basic needs, and by being salespeople for MLMs, ruin social relationships as well.

 

[baydude]

I quickly figured out that MLM is a just legalized scam that is only legal due to various loopholes in my late teens after several attempts to hook and reel me in.

You just answered your own question

 

[baydude]

https://www.quora.com/Why-are-MLM-companies-legal-Shouldn’t-they-be-illegal-since-they’re-an-incarnation-of-the-pyramid-scheme

In 1979 a landmark case, FTC vs Amway, concluded that multi-level marketing (MLM), now more commonly called network marketing or direct sales, was a legitimate business opportunity and not a pyramid scheme.

Other relevant info in that page-

This should probably be in a different thread or one by itself but Quora is the worst place to get unbiased answers as everyone responding either has a personal motive, self interest, or trying to sell something in the form of giving the most “informative and researched” advice. You should check out some of the questions related to crypto currency.