Pyramid Schemes & MLM
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Pyramid Schemes & MLM




Pyramid schemes represent an all-too-common type of fraud which is only rarely prosecuted. Pyramid schemes are frequently disguised as multi-level marketing, a.k.a. network marketing, in which commissions are paid based upon the number of members a sponsor recruits. While not all companies engaged in multi-level marketing are scams, those that emphasize recruiting over product sales or which pay commissions based upon a large or unlimited number of recruitment levels most certainly are. Chain letters are perhaps the most familiar form of pyramid scheme.

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Follow links to the right to learn more about pyramid schemes, multi-level marketing (MLM) and asset protection. At the left margin, Related Links address topics of interest pertaining to security and consumer protection. View the Security & Consumer Protection SiteMap for a complete list of security and consumer protection topics.


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