Multi-Level Marketing Income Disclosures

Some multi-level marketing (MLM) companies release income disclosures or earnings disclosures. These documents theoretically provide insight into how much distributors earn in commissions or overrides. However, the disclosures are generally worthless. What is more important than the information in these documents? The information that is not disclosed in the documents. …

Medifast Take Shape For Life: Endless Chain?

A recent filing in the Medifast appeal (the case in which Medifast sued me and others, and lost miserably) raises some interesting questions about whether Take Shape For Life (TSFL) is an endless chain recruitment scheme. From that filing: A. Medifast’s Evidence Does Not Prima Facie Show That FitzPatrick’s “Endless …

If Herbalife Was a Pyramid Scheme, It Would Have Collapsed By Now

One of the most common arguments used against those who deem multi-level marketing companies pyramid schemes, is that pyramid schemes collapse. Because Herbalife hasn’t collapsed, it must not be a pyramid scheme. Because the company has avoided total collapse for more than 30 years, it can’t possibly be a pyramid …

Multi-Level Marketing or Pyramid Scheme?

Recently Bruce Craig, a retired lawyer from the Wisconsin Department of Justice in the area of consumer protection, published an interesting article on multilevel marketing: An Investor’s Guide To Identifying Pyramid Schemes. The controversy surrounding Herbalife (NYSE: HLF), and initiated simply because David Einhorn asked a few questions about the …

Internet Marketing and Multi-Level Marketing: Same Scam, Different Name

Recently I have been digging into the Salty Droid (you can’t make money online) archives. Salty Droid is an attorney in Chicago who writes about scammers who pitch their wares on the internet. I’ve been aware of the site for a while. But little did I know that Salty Droid …