In this interview with Julie Anderson, Robert FitzPatrick goes over his 'Anti MLM Declaration.' In his document, Robert states in conclusion that:
The Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB) and Securities & Exchange Commission (SEC) should:
- end the current policy of neglect and presumption of MLM "legitimacy"
- initiate investigations of MLM structure, methods and consequences
- refer findings to the US Dept. of Justice.
In a recent comment sent anonymously to me, Robert FitzPatrick and I were accused of stopping (American) 'MLM' victims from filing complaints with the Federal Trade Commission by 'criticizing' it.
In response, I posted the following:
__________________________________________________________________Whoever you are, your comment is merely a limp apology for the chronic failure of US regulators to do their job and protect the American public. Furthermore, this chronic failure in the USA has led to the Big 'MLM' Lie being allowed to spread all around the world.
Since 1979, the FTC's official policy has been to sit on the fence pretending that 'MLM is a perfectly legal form of direct selling/commercial enterprise - provided potential income claims are not exaggerated and certain conditions are respected concerning the % of retail sales being conducted.' Yet each time an isolated 'MLM' company has been investigated by the FTC, it has been found to have always been acting illegally by design -making outrageous fake potential income claims and with virtually no authentic retail sales to persons who have not been contractors of that company.
Consequently, the FTC has issued what can appear to casual observers to be well-informed public warnings that 'MLMs' can be frauds. Laughably, every red flag that the FTC has outlined to the public (which indicates a fraudulent 'MLM'), has obviously been flying over every single 'Amway' copy-cat so-called 'MLM income opportunity.'
Not one 'MLM' company has set common-sense limits on the number of contractors being signed up or on the areas where they are supposed to find customers.
All 'MLMs' have offered their constantly- churning losing contractors commission payments on their own purchases and on the purchases of their recruits, etc. etc. ad infinitum.
All 'MLMs' have sought to hide, and/or mystify, the overall effectively 100% net-loss/churn rates for their so-called 'income opportunities.'
Thus, contrary to what you imagine, I am not criticizing the FTC, I'm absolutely condemning this government agency and those who have been in charge of it. I have repeatedly said that the FTC is a pathetic joke which should, itself, have been flying a flag ------- a white one!
Years ago, as part of an attempt to rescue members of my family from the clutches of the 'Amway' racketeers, I wrote to various individuals in the UK: including trade regulators, law enforcement agents, legislators, journalists, editors, etc. However, I got absolutely no serious response to my urgent concerns. What I said at that time, is in broad agreement with Robert FitzPatrick's 'Anti-MLM Declaration.'
The following is part of what I originally-wrote in 1999 when there was no Anti-'MLM' Movement in sight:
What has become popularly-known as, 'Multi-Level Marketing,' has been neither multi-Level nor marketing. On the contrary, it has been a reality-inverting, self-perpetuating, cultic racket in which victims have been exposed (without their fully-informed consent) to long-established, co-ordinated, devious techniques of persuasion (social, psychological and physical) designed to shut-down their critical, and evaluative, faculties. In this way, millions of our fellow citizens (including members of my family in Yorkshire) have been temporarily dissociated from external reality and deceived into buying infinite shares of what can only be their own finite money; all in the false-expectation of a demonstrably-non-existent future reward. In exchange for their unlawful losing investment payments (which have been laundered as 'lawful retail sales'), 'MLM' victims have been given exorbitantly-priced (effectively unsaleable) goods/services. Whilst they have remained under the contol of the pernicious 'MLM' fiction, victims have been deluded de facto slaves dissipating their own physical, financial, social, family and mental resources in an attempt to lure others into the same blame-the-victim cultic trap. It remains unclear how much damage this historically-significant, but still unrecognised, criminogenic phenomenon has done, and is doing, to the UK economy, not to the mention the social, and psychological, damage it has done, and is doing, to our fellow citizens.
David Brear (copyright 2023)