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Believe that their individual MLM's are operating under sound and ethical business practices. In this they have been aided by aggressive promotion of the "DSA Code of Ethics," to which most major MLM's subscribe. While a few great principles are found within this code, crucial points regarding disclosure and exploitive pyramidal features covered in this paper are omitted. I have finally concluded that though there might be a couple MLM promoters that are aware of the fraud they are committing, most are in severe denial regarding the losses as well as different damage their apps are still all causing. Inside my communications using MLM business officials and promoters, they seem to have lost the ability to distinguish between facts from error when discussing their programs and comparing MLM using increased honest business models. The infinite string compensation and advertising and marketing systems which are inherently uneconomic. A new semester is needed to spell out the villain for the wrongs committed. We might call it "system fraud," suggesting that the fraud is not really far in these products (though the majority are questionable) or the folks (though a few MLM founders have shady pasts), since it's in the compensation and advertising systems that perpetuate the various MLM chains. Unfortunately, the legislation are not written to violate systems,http://www.techbasesolution.com only people. So if any action is accepted, some of the leaders of their most exploitive MLM's may have to be prosecuted -- all time kicking and yelling They are innocent of any wrongdoing Wisconsin statute ATCP 122 we'd not even have this problem. ATCP 122 describes "chain distributor schemes" which are synonymous with pyramids. According to Bruce Craig, formerly assistant to the Attorney General of Wisconsin, this principle has twice been preserved by appellate courts and has undergone challenges on vagueness, terminology and mis-application to naive small business activities. http://www.techbasesolution.com ATCP 122 prohibits any sales device "whereby a individual, upon a condition that the person make a investment (which can be in the form of money or product purchases -- at the start or continuing as a requirement for eligibility for commissions and overrides) has been granted a permit or directly (by the organization that conducts the pyramid perhaps not the former participant) to sponsor for profit (i.e., over-rides on the sponsor purchases) a number of additional persons who will also be granted such (i.e., the same and perhaps not just a lower) license or directly (hence perpetuating the chain) upon condition of earning an investment and might further perpetuate the chain of persons that are granted such license or right upon such condition." (hence completing the "infinite" feature of this chain). The term "investment" comprises any purchase and excludes earnings kits sold at cost." 2-9 Regrettably, the MLM industry is really well entrenched within our society which effective laws for protecting consumers may be near impossible without massive community support and also clamor for change -- which isn't very likely to take place. In reality, the opposite is more likely -- participants in all kinds of pyramid schemes will struggle to shield a scheme until they have experienced their opportunity to "cash out." In any case, let us not deceive ourselves -- many MLM programs are product-based pyramid schemes, which cause harm and loss for participants and countless dollars in losses in the aggregate.
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