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Antitrust and Trade Regulation Commons™
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Multi-level marketing; consumer protection; pyramid scheme; FTC; LuLa Roe; Herbalife; Spreme Court; AMG Capital Management LLC v. FTC; Section 5; Section 19; Law; Policy; Enforcement; Lobbying; Administrative Law; Society
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Full-Text Articles in Antitrust and Trade Regulation
Big Dreams And Pyramid Schemes: The Ftc’S Path To Improving Multi-Level Marketing Consumer Protections In Light Of Amg Capital Management And The 2016 Herbalife Settlement, Camille H. Mangiaratti
Big Dreams And Pyramid Schemes: The Ftc’S Path To Improving Multi-Level Marketing Consumer Protections In Light Of Amg Capital Management And The 2016 Herbalife Settlement, Camille H. Mangiaratti
Journal of Law and Policy
Multi-level marketing, also known as “MLM,” is a type of sales business that relies on both sales to consumers and recruitment of sellers into the company’s tiered commission structure. MLMs are wildly and enduringly popular, especially because they claim to be a flexible and easy source of income for people who need it most. However, almost everyone who joins an MLM will lose money, and many MLMs are illegal pyramid schemes. Millions of Americans are harmed by MLMs every year. Despite this, the government does very little to punish MLMs who lie to prospective participants about their odds of success. …