A study of Utah tax preparers sheds some light on who is profiting from multi-level marketing, network marketing, pyramid schemes, or a variety of other labels given to these sham businesses.
1. Summary of what was learned from these studies
Are MLM’s* (multi-level marketing or network marketing companies) legitimate? Or are they thinly disguised pyramid schemes that enrich a few at the top of a pyramid – at the expense of a multitude of unwitting downline victims? If the latter, then consumers, the press, consumer protection agencies, and investors (for publicly traded MLM companies) have been duped into accepting it as legal and ethical, when in fact it is not. Continue Reading →