New book explodes MLM deceptions.
Jon M. Taylor, M.B.A. Ph.D. has published THE CASE (FOR AND) AGAINST MULTI-LEVEL MARKETING: The Complete Guide to Understanding and Countering the Effects of Endless Chain Selling and Product-based Pyramid Schemes. The book's introduction states:
**MLM as a business model is predicated on an endless chain of recruitment, as are "pay to play" chain letters and no-product pyramid schemes.
**Every one of the compensation plans of hundreds of MLMs Taylor has analyzed assumes an infinite and virgin market, neither of which exist in the real world. MLM is therefore fundamentally flawed, uneconomic, and deceptive.
**Loss rates are extraordinary - over 99% for all of the MLMs for which Taylor has been able to obtain relevant data.
The 313-page eBook can be downloaded free of charge from http://www.mlmwatch.org/
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Conclusions from the book:
MLM is arguably the most unfair and deceptive of business practices today. Both state and federal laws are routinely broken by MLM companies. Federal and state agencies have been unable to stem the tide of MLM abuse, except in extremely rare cases that are prosecuted. This is due in part to the silence of victims and in part due to the lack of resources and prosecutorial will to confront their powerful legal teams. The DSA/MLM cartel works tirelessly to orchestrate the dialogue of deception on which MLM depends. It has been successful in weakening the laws in several states to favor MLMs, to the detriment of consumers.
The bare minimum of consumer protection would be a rule requiring that MLMs disclose information essential to prospects’ making informed decisions about participation. Consumers should be warned against the inherent flaws in all endless chain recruitment programs, including MLM.
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