ATCP 122
Kategori: Allmänt
Believe their various MLM's are operating under sound and ethical business practices. Though a few decent principles are included within this code, most crucial things regarding disclosure and exploitive pyramidal features addressed in this newspaper are omitted. I have concluded that though there might be a few MLM promoters that are aware of the fraud that they have been committing, many have been in severe denial regarding the losses and other damage their programs are still causing. Inside my communications with MLM company officers and promoters, they appear to have lost the power to distinguish between truth from error when talking their programs and comparing MLM with increased honest business models.
The endless series compensation and advertising and marketing systems that are inherently uneconomic. A new semester is needed to spell out the villain for the wrongs committed. We might call it "system fraud," indicating that the fraud is not really far in these services and products (though most are suspicious) or the folks (though a few MLM founders have shady pasts), even since it's from the compensation and advertising and marketing systems that encircle the respective MLM chains. Alas, the laws are not written to prosecute systems, just people. If any action is taken, some of the leaders of the most exploitive MLM's may have to be prosecuted -- all the time kicking and screaming that they are innocent of any wrongdoing
Wisconsin statute ATCP 122 we'd not even have this problem. ATCP 122 refers to "chain distributor schemes" which are interchangeable with pyramids. According to Bruce Craig, formerly assistant to the Attorney General of Wisconsin, this rule has twice been maintained by appellate courts also it has undergone challenges on vagueness, vocabulary and mis-application to naive small business activities.
ATCP 122 prohibits any sales device "where a individual, upon a condition that anyone make an investment (which can be in the kind of money or product purchases -- at the start or ongoing as a requirement for qualification for commissions and overrides) has been granted a permit or directly (by the corporation that conducts the pyramid maybe not the former participant) to sponsor for profit (i.e., over-rides on the sponsor purchases) one or more additional persons that will also be granted such (i.e. the exact same and not really a lower life expectancy) license or directly (thus perpetuating the string) upon condition of making an investment and might further perpetuate the chain of persons that are granted such license or right upon such condition." (hence completing the "infinite" aspect of this series). The definition of "investment" includes any purchase and excludes sales kits sold at cost." 29 Unfortunately, the MLM industry is indeed well entrenched in our society that effective laws for protecting clients could be near impossible without massive community aid and also clamor for change -- that is not very likely to happen. In reality, the alternative is much more likely -- participants in all types of pyramid schemes will struggle to shield a plot until they've had their chance to "cash out." In any case, let's not fool ourselves -- most MLM programs are product-based pyramid strategies, which cause harm and loss for participants and countless dollars in losses from the aggregate
