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  • Petition Concerning Mlm Industry Public - Pyramid Scheme Alert

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UNITED STATES OF AMERICA BEFORE THE FEDERAL TRADE COMMISSION WASHINGTON, D.C. 20580 ) IN RE: PETITION TO TAKE ENFORCEMENT ) ACTION AND PROMULGATE TRADE ) REGULATION RULE CONCERNING UNFAIR ) AND DECEPTIVE.

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File a complaint with the SEC. If the MLM is a publicly-traded company, the Security and Exchange Commission should know about it. They may do very little, as their resources for pursuing such small claims is limited.

To report a Ponzi scheme and qualify for an award under the SEC Whistleblower Program, the SEC requires that whistleblowers or their attorneys report the tip online through the SEC's Tip, Complaint or Referral Portal or mail/fax a Form TCR to the SEC Office of the Whistleblower.

Pyramid schemes are not only illegal; they are a waste of money and time. Because pyramid schemes rely on recruitment of new members to bring in money, the schemes often collapse when the pool of potential recruits dries up (market saturation).

Recruiting people to participate in a pyramid scheme is a felony crime in the United States, and is punishable by up to four years in prison, up to a $5,000 fine or both. ... If a marketing system is found to be a pyramid, the court can also order the defendant to pay civil penalties and consumer restitution.

MLM companies are legal because they are not pyramid schemes. They trade in legal products or services, thereby making them legitimate business models. ... MLM companies are legal because they are not pyramid schemes. They trade in legal products or services, thereby making them legitimate business models.

On the federal level, regulation has largely come through actions initiated by the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC) and U.S. Postal Service. The seminal FTC MLM decisions are In re Koscot Interplanetary, Inc., 86 F.T.C. 1106 (1975), and In re Amway Corp., 93 F.T.C. 618 (1979).

You may approach police and get your complaint registered for registration of an First Information Report ("FIR"); 3. You may file complaint with the regulatory body.

Both Ponzi schemes and pyramids are quite seductive because they may be able to deliver a high rate of return to a few early investors for a short period of time. Yet, both pyramid and Ponzi schemes are illegal because they inevitably must fall apart. No program can recruit new members forever.

A pyramid scheme can take many forms, but generally involves the promise of making money by recruiting new people. Pyramid schemes are illegal, and most people lose money.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232