Comments on: Word is getting out about ShopToEarn lawyer Gerald Nehra’s threats to bloggers

By: it's just me

it's just me — Fri, 26 Sep 2008 07:20:32 +0000

Alot of MLM ‘Pyramids’ shut themselves down, and convert over to a new name, new product downline, etc.. when they know they are about to be caught, sued, etc… It’s a common thing going on for years. Many have no real contact information available, making it harder to find them and serve them with lawsuits and such, but it happens eventually, and they are already set up with a new version of the old scheme.
The dupe distributors in because they don’t disclose the whole program. They use the ‘offering online shopping’ and a sales pitch, not much differant than what they pitch potential suckers..err…investors in with.. so they don’t get called lyers, or called for not disclosing information, they leave alot out, then say ‘but it’s on our site where anyone can read it’, and it usualyl is, hidden behind a dozen links to a page with small print on the bottom. The people running the scams…err..MLM Pyramids aren’t stupid, they researched alot and know what they are doing, and target those who have no clue, are desperite for cash flow, lazy, etc.
With today’s economy being so bad, it’s rather easy for them to pitch this stuff to common people, so certain schemes have skyrocketed with signups. These same people have no idea it’s costing them even more money, when they don’t have it to begin with, but they think they’re making money.

By: katsmeow

katsmeow — Fri, 26 Sep 2008 04:32:19 +0000

Quix…yep. Thanks so much for your help and Tracy’s. I guess I am testing it, huh? heh Hope we get a question and answer period.

By: quixtarisacult

quixtarisacult — Fri, 26 Sep 2008 04:11:26 +0000

katsmeow…

Your free. No judgment here either. We have discussed how many people do MLM and experience every negative thing they are known for, but have some need within their psyche that finds fulfillment within groups that provide enthusiasm whether the enthusiasm was justified or not. I would say that all the enthusiasm you might witness at a rally or meeting comes from a need within along with a phenomenon called group think. I just mention this in passing, so you might see how this works first hand. These concepts are so complex but yet can be explained in one or two sentences at the same time. People resolve conflict by continuing with the wrong conclusion while disregarding the truthful facts. Amway relies on this. They know they cannot insulate their people from conflict. They prey on people’s weaknesses like Mary Kay does.

By: katsmeow

katsmeow — Fri, 26 Sep 2008 03:35:52 +0000

Quix…there is little difference between our thinking, but where we come from. I think we often give away our ability to think for ourselves and hide behind the letter of the law.

I understand the “letter” is there to assist some, but not all. When you know better, then you should just know better. When you do not know better then there are people, such as you, who help. No judgement about any of it.

Guess what? I am gonna go to that freakin mind fest tomorrow with my best friend. I already told her I might not be the one she would like to attend with her. heh…Oh well…oh and I have no clue why I am doing it. I am thinking its because she is my best friend and its because I don’t want to leave her to the wolves. We’ll see how well I do.

By: Tracy Coenen

Tracy Coenen — Wed, 24 Sep 2008 03:14:58 +0000

I don’t expect the government to actually enforce the laws related to MLMs any time soon.

What I think is of larger concern to everyone in an MLM is the contract which they signed when they joined. I have yet to see one that gives the distributor any sort of rights. With Mary Kay, for example, about the only rights the distributor has is to sell the products and collect commissions if they recruit. There are all sorts of restrictions on how and where they can sell the products, and how they can market the products. But the most alarming part is that any distributor for MK can lose their distributor position at any time, without any sort of cause or reason. MK can effectively take away the distributor’s ability to sell the products, and the downline is taken away with no compensation. The distributor cannot sell or will the downline to anyone.

By: quixtarisacult

quixtarisacult — Wed, 24 Sep 2008 01:49:28 +0000

katsmeow…

This is an antiquated law that has been superseded by Contract Law which provides for “Implied Warranty”. Concealing latent defects is generally grounds for relief in most jurisdictions, but maybe Tracy could clarify. There are Universal Trade laws in this country I believe, that provide relief for buyers, and in some case for sellers as well, who can also be a victim in any transaction. MLMs obviously conceal defects and many times make claims that, although are possible, are nearly impossible to realize. This is a defect that many lawsuits are caring forward right now against MLMs like Amway and YourTravelBusiness.

Distributors should be aware that the scheme they are involved in could be shut down almost over night and thereby put any investments the dream down a rat hole. For instance, around 1995 JewellWay (a sort of clone of Amway) was shut down and distributors received a paltry $29 or some money figure in that range after all the assets of the scheme were collected and sold off to compensate the distributors duped by the company. I might say that the same situation could apply to any of the MLM companies that are currently being sued or charged by Attorney Generals around the US. Distributors are told to pay no attention to these proceedings, that is until one day when they get “the letter” telling them the unfortunate news about their scam being settled out of court. I know, I got one of these letters. I luckily didn’t loose more than the sign up fee because I soon became jaded and never pursued the dream. I pursued my real vocation as a electronics technician instead.

Caveat emptor as a latin term that is interpreted as “Let the buyer beware” as you suggest. It may not hold water in a modern court of law.

By: Tracy Coenen

Tracy Coenen — Wed, 24 Sep 2008 01:15:33 +0000

This is an excellent article about finding or creating a “lack” in women to recruit them into Mary Kay:

http://www.pinktruth.com/index.php?option=com_content&task=view&id=479&Itemid=53

By: katsmeow

katsmeow — Wed, 24 Sep 2008 01:09:48 +0000

Caveat Emptor…it can be applied on many fronts.

By: quixtarisacult

quixtarisacult — Wed, 24 Sep 2008 00:30:52 +0000

If a psychological weaknesses in the human race is a need for which the capitalistic economy meets a need, then aren’t the people operating and touting these schemes (and that is what they are) are no different than a common drug dealer/pusher down by the corner dishing out packets of his wares? He takes full advantages of the weakness inherent in the human race. Distributors pushing these stupido plans should not stick their chest out like they are helping their fellow man. They should hang their heads in shame.

By: katsmeow

katsmeow — Wed, 24 Sep 2008 00:19:42 +0000

I study through another aspect of living, yet, left and right brain do connect on occassion. It, indeed, is always a pleasure. Lack, in the capatilist system will always be met by supply. The landscape need not be confined to actual services or goods. Lack in one’s emotional/spiritual life is a pretty substantive target and one that had not changed in any real sense for quite some time.

I fight on different fronts, but I fight none-the-less. I have never been enamored of anyone who takes advantage of others. That will not change either.

Thanks for the links Tracy, reading them now with little surprise, but alot of sadness.

As I stated before…I would not have gone here, but for my friend. Sometimes things just work out that way. Oh and I have nothing against capitalism…kept me fed and living in a very comfortable way all my life.