The lie which is fundamental to all 'closed-market swindles' is that people can earn financial reward by first contributing their own money to participate in an (alleged) 'profitable commercial opportunity' which is secretly an economically-unviable fake, due to the fact that the (alleged) 'profitable commercial opportunity' has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own participants.
|The classic 'MLM' inversion of reality.
Whilst looking at the following article, readers are invited to bear in mind that, currently, there are approximately 1000 essentially identical 'MLM Income Opportunity' rackets which have been allowed to hide in plain sight (as labyrinths of legally-registered corporate structures) in the USA. Amazingly, no agency of the US federal government has ever uncovered the universally-insolvent results of 'MLM' participation which might have enabled regulators to reverse-engineer how this type of blame-the-victim, organized fraud has functioned. Consequently, American legislators have never introduced any common-sense law accurately-defining economically-viable direct selling, in which the sponsors of all so-called 'Multi-Level Marketing direct selling schemes' would be required to produce independent quantifiable evidence proving that the overwhelming majority of their declared 'direct sales' have always been authentic retail transactions (based on value and demand) to members of the general public.
Following the publication last week of Edith Ramirez' response to Senator Ed. Markey's concerns about 'Herbalife,' a reader has asked me what I would like to say to the latest (temporary) FTC Chair, if I was given the opportunity to meet with her face to face?
One of the many questions which I have tried (unsuccessfully) to put to senior FTC officials in the past, is:
For those readers who have not read Ms. Ramirez' letter, a copy can be found by clicking on this link http://www.markey.senate.gov/imo/media/doc/2014-02-27_FTC_re_Herbalife_Markey.pdf
|'Dear Senator Markey ... the FTC also takes seriously the harm illegal pyramid schemes have on consumers and has used its authority under section 5 of the FTC Act in appropriate cases. For example, since 1996, the FTC has brought 15 cases alleging that purportedly legitimate multi level marketing companies were, in fact, pyramid schemes in masquerade.' Most recently last year the FTC filed a case against Fortune Hi-Tech marketing and related entities. The FTC, amongst other things, alleged that the defendants operated an illegal pyramid scheme and falsely claimed consumers would earn extra money for selling various products and services. In reality, the FTC charged that nearly all consumers who signed up with the scheme lost more money than they ever made. The FTC further alleged that to the extent that consumers could make any income, it was mainly for recruiting other consumers.
February 27th 2014
Judging by the content of her recent letter to Senator Markey, evidently no one at the FTC has yet dared to inform Ms. Ramirez (who is a history graduate as well as a qualified attorney) that, ignoring the insignificant minority of grinning shills, the hidden overall-loss/churn rate for so-called 'MLM Income Opportunities' (large and small) has always been effectively 100%. Indeed, according to 'Herbalife's' own declared numbers of 'distributors' and annual drop-out rates, a'lawful sales to customers and end users'value and demandfailure to make money is, therefore, always entirely the fault of individuals who quit 'Herbalife': never that of the 'Herbalife MLM Income Opportunity' or its sponsors.