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Why isn't Multi level marketing illegal?

W

whm1974

Diamond Member
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 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.
 
whm1974 said:
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.
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Because we have, especially now, buyer beware capitalism.
 
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.
 
realibrad said:
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.
Click to expand...

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.
 
realibrad said:
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.
Click to expand...
No one as yet is trying do as such but I watch Rachel Oats YouTube channel from time to time.
 
zinfamous said:
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.
Click to expand...

That might very well be true, and if it were to happen then that is pro.
 
zinfamous said:
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.
Click to expand...
Religious institutions should be held just as accountable for their actions just like everyone is.
 
realibrad said:
That might very well be true, and if it were to happen then that is pro.
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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.
 
zinfamous said:
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.
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I mean, it still goes back to money. Many "churches" like Scientology are about money and power anyway.
 
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.
 
zinfamous said:
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.
Click to expand...
I wonder if state or local governments started warning people about those legal scams the Feds will tell them to stop?
 
Amused said:
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.
Click to expand...
I have noticed MLM schemes are provident among fundies.
 
Separating fools and money is a social positive. It means that fools have fewer resources to allocate foolishly.
 
IronWing said:
Separating fools and money is a social positive. It means that fools have fewer resources to allocate foolishly.
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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.
 
blackangst1 said:
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-
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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.
 
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