Comments on: Pyramid Scheme Alert reflects on 2007

By: Pedro Menard

Pedro Menard — Wed, 26 Mar 2008 12:31:27 +0000

Revised Proposed Biz Op Rule is out now, as from 18 March.

http://ftc.gov/os/2008/03/R511993business.pdf

From what I could understand from this extensive document, Pyramid Schemes and fraudulent MLM ID methods will be left out for now… FTC feels the Biz Op rule lacks any means necessary to differentiate between legit MLM and Pyramid Schemes.

FTC, for the time being, will continue to follow Section 5 of the FTC Act to evaluate possible fraudulent situations. However, a door into further propositions seems to have been left opened.

The Initial Rule has been changed in accordance to complaints of MLM salespeople. 95% of the letters received during a 2 year reflection period came from them.

Both PSA and CAI have been awarded dedicated parts of the document, enabling FTC to demonstrate some of their points of views. Quite frankly and unfortunately, I think they have been ignored,.

So, will the rule pass? I think it will.

Will it be sufficient to stop MLM frauds? No, not a chance.

Best Regards,

Pedro Menard, Portugal.

By: Renata Scherer

Renata Scherer — Wed, 23 Jan 2008 16:10:06 +0000

What can we do to help pass the FTC Bizop Rule???

If it passes on the US we’ll have a very good precedent overseas….and we need this to put this thing down once and for all.

We have a blog….the subject: MLMs
http://industriadadecepcao.wordpress.com.

There’s a lot of very good stuff there (articles, comments). I’d be pleased if anyone could acess and read, maybe even contribute.

Best regards (from Brazil)

Renata

By: Pedro Menard

Pedro Menard — Wed, 23 Jan 2008 13:20:45 +0000

I see a loooooong road ahead, before MLM-based pyramid scams are put to death permanently.

To Mr. Atkins,

“’m trying to understand how a “fraud” could go on for almost 50 years.”

I’m trying to understand how Hitler managed to talk millions of fellow citizens into World War II and gas millions of Jews in the process. And yet, he did. It´s part of a one-decade-period in World history.

Regards from Portugal,

Pedro Menard

By: Michael Webster

Michael Webster — Fri, 18 Jan 2008 15:55:16 +0000

John perhaps you should read this article:

http://www.pyramidschemealert.org/PSAMain/news/MLMInfluenceBuying.html

By: John Adkins

John Adkins — Fri, 18 Jan 2008 02:58:18 +0000

“Multi-level marketing will go down in history as one of the great frauds of our times.”

Interesting opinion. I’m trying to understand how a “fraud” could go on for almost 50 years. If it wasn’t for this “fraud”, I wouldn’t be able to afford to have the career I love as a Firefighter/EMT. Trainig wise, I hold the equivilent of a Masters degree, yet even base CPA’s make more than we do! Anyway, just my 2 cents worth.

By: Tracy Coenen

Tracy Coenen — Wed, 16 Jan 2008 04:09:12 +0000

I hope you’re right. I’ll be rooting for good to win over evil on this one!

By: michael webster

michael webster — Wed, 16 Jan 2008 03:28:28 +0000

My sense is that the FTC Staff has done a terrific job and that the new Biz Op Rule is not likely to be buried.

Too much good work already done.

By: Tracy Coenen

Tracy Coenen — Wed, 16 Jan 2008 03:21:08 +0000

Me too, but I think it’s just a pipe dream. I fear that the political forces will keep it buried forever.

By: michael webster

michael webster — Wed, 16 Jan 2008 02:56:52 +0000

I would be a lot happier if the FTC Bizop Rule was passed!