tag:blogger.com,1999:blog-7762286463497378104.post3263980717923145696..comments2024-03-27T23:11:38.102+01:00Comments on 'MLM' The American Dream Made Nightmare: FTC releases 'MLM' staff guidance document stating that the 'Herbalife' ruling is not binding on other 'MLM' companiesDavid Brearhttp://www.blogger.com/profile/11122471861776758998noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7762286463497378104.post-40883312522041847362018-01-14T17:59:15.360+01:002018-01-14T17:59:15.360+01:00Yet again, I've been contacted by a journalist...Yet again, I've been contacted by a journalist wanting to know why I say that 'MLM' companies are frauds when they offer goods for sale?<br /><br />The following is my standard response to this FAQ.<br /><br />In 'MLM' rackets, the innocent looking products/sevices' function is to hide what is really occurring - i.e The operation of an unlawful, intrinsically fraudulent, rigged-market where effectively no (transient) participant can generate an overall net-profit, because the market is in a permanent state of collapse and requires its (transient) participants to keep finding further (transient) participants. <br /><br />Meanwhile a tiny (permanent) minority rake in vast profits by selling into the rigged-market and by controlling all key-information concerning the rigged-market's actual catastrophic, ever-shifting results from its never- ending chain of (transient) losing participants.<br /><br />It is possible to use any product or service to dissimulate a rigged-market swindle aka pyramid scheme. There are even some 'MLM' rackets which have hidden behind well-known traditional brands (albeit offered at fixed high prices). <br /><br />In 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of contractees of the 'MLM' front companies. These front-companies always pretend that their products/services are high quality and reasonably-priced and that they can be sold on for a profit based on value and demand. In reality, the underlying reason why it's mainly only been 'MLM' contractees who buy the products /services (and not the general public) is because they have been led to believe that by doing so, and by recruiting others to do the same etc. ad infinitum, they will receive a future (unlimited) reward.<br /><br />I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company which has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.<br /><br />The key-information which all 'MLM' bosses seek to hide concerns the overall number of persons who have signed contracts since the front companies were instigated and the retention rates of these contractees. <br /><br />When rigorously investigated, the overall hidden net-loss churn rates for so-called 'MLM income opportunites' has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible make a living in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.<br /><br />Some of the biggest 'MLM' rackets (like 'Amway' and 'Herbalife') have hidden in plain sight and secretly churned tens of millions of losing participants over decades.David Brearhttps://www.blogger.com/profile/11122471861776758998noreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-36383955512175497312018-01-12T11:22:56.792+01:002018-01-12T11:22:56.792+01:00Anonymous - In theory, the FTC officials should do...Anonymous - In theory, the FTC officials should do their job (i.e. protect the American people).<br /><br />In reality, by their incapacity to tell the truth publicly (i.e. own up to the fact that they have never fully-understood how blame-the-victim 'MLM' cultic rackets function), generations of ill-informed FTC officials have been enabling mass-theft not only from generations of ill-informed US citizens, but from generations of ill-informed citizens of countres all around the world.<br /><br />'MLM' racketeering has had precious little to do with business in the traditional sense of the word. Consequently, the fact that 'MLM' racketeering has only been investigated/prosecuted officially by commercial regulators in the USA, is itself a major victory for 'MLM' racketeers.<br /><br />David Brearhttps://www.blogger.com/profile/11122471861776758998noreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-69042952558213235232018-01-12T10:29:03.714+01:002018-01-12T10:29:03.714+01:00What should the FTC do?What should the FTC do?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-71417791510916909132018-01-11T12:38:50.111+01:002018-01-11T12:38:50.111+01:00Anonymous - The 'MLM' crime syndicate, and...Anonymous - The 'MLM' crime syndicate, and their de facto agents at the so-called 'Direct Selling Association,' had already infiltrated the FTC long before the arrival of Trumpland. The large number of American politicians (including Trump) and retired politicians (including Madeleine Albright) who have had their snouts in the stinking MLM trough, is another major factor preventing federal law enforcement agents/prosecutors from facing up to reality.<br />David Brearhttps://www.blogger.com/profile/11122471861776758998noreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-78755115562137818682018-01-11T12:13:55.600+01:002018-01-11T12:13:55.600+01:00It makes me wonder influence has the Trump adminis...It makes me wonder influence has the Trump administration had over this?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-25095604928214863032018-01-10T15:09:23.259+01:002018-01-10T15:09:23.259+01:00Anonymous - This document pretends to be have been...Anonymous - This document pretends to be have been compiled as a guide for FTC staff when answering questions from the public.<br /><br />However, as if to demonstrate the ignorant absurdity of the FTC's latest fence-sitting position in respect of the pernicious 'MLM' fairy story, the final question/answer renders the entire document valueless and almost beggars belief.<br /><br />______________________________________________________________________ <br /><br />"18. Are the answers in this document legally binding?<br /><br />No, this is an FTC staff business guidance document. It does not necessarily represent the views of the Commission or any Commissioner and is not intended to, and does not, create any rights or obligations with respect to the Commission, the FTC staff, or the public."<br /><br />______________________________________________________________________<br /><br />This means that the FTC's claim in question/answer 12, that the 'Herbalife' and 'Vemma' rulings are not legally-binding on other (so-called) 'MLM companies,' is itself not legally binding. In other words, this document is meaningless drivel which, for obvious reasons, not even the Commission or members of the Commission are prepared to stand by (either as individuals or as employees of the people).<br /><br />______________________________________________________________________<br /><br />12. "Are orders obtained as a result of FTC enforcement actions, such as the ones entered in FTC v. Herbalife and FTC v. Vemma Nutrition Co., binding on the industry?<br /><br />Orders obtained through settlements of FTC law enforcement actions are not binding on the entire industry. Such orders, however, can be useful to MLMs that are not bound by them. Industry members may choose voluntarily to follow the provisions in these orders or to consider the provisions in developing their own practices and procedures. All industry members have an obligation to follow the law, and the provisions in FTC orders may provide guidance and insights to help them do so."David Brearhttps://www.blogger.com/profile/11122471861776758998noreply@blogger.comtag:blogger.com,1999:blog-7762286463497378104.post-88556043601291686892018-01-10T14:24:57.971+01:002018-01-10T14:24:57.971+01:00Is this document aimed at guiding FTC staff or the...Is this document aimed at guiding FTC staff or the public?Anonymousnoreply@blogger.com