MLM is a Pseudo Franchise

Multilevel Marketing (MLM) portrays itself as a business that anyone can do, with low barriers to entry and no experience necessary.[1]  However, the contracts that MLM distributors are required to sign paint a different picture.  MLM distributor agreements are similar to franchise agreements; they are lengthy, complex, sophisticated commercial instruments.     Like franchise agreements, MLM distributor … Read more

The MLM Industry is Lobbying Hard to Prevent the FTC From Expanding the Business Opportunity Rule to Cover MLM Opportunities

The latest House appropriations bill, H.R. 4664, includes a provision designed to starve the Federal Trade Commission of the funds necessary to effectively regulate the multilevel marketing industry.   Section 531 of this massive bill provides that “[n]one of the funds in this Act may be used to finalize or enforce the “Trade Regulation on the … Read more

FTC Obtains Court Order Shutting Down “Success by Health” MLM and Prohibiting Defendants from Participating in Any MLM Program

The Federal Trade Commission has just scored a convincing victory over the MLM “Success by Health” and its founder, serial MLM fraudster James D. Noland, Jr., as well as several other Success by Health officers and related entities.   After an 11-day bench trial, Judge Dominic Lanza issued an injunction barring Noland and the other defendants … Read more

Usana Alleged to Have Secretly Paid for “Objective” Ratings by NutriSearch; Rival Ariix Sues

When I hear about a case where one MLM is suing another MLM, my first thought is “Is there some way they can both lose?”   Usually such cases involve one MLM poaching distributors from another, distributors being the most valuable commodity owned by any MLM.   But this case is a little bit different.  Here are … Read more

In Memory of Bruce Craig, a Passionate Advocate for Victims of Pyramid Schemes

I thought it would be appropriate to start off this blog with a post acknowledging the passing of one of the most dedicated advocates for victims of MLM-style pyramid schemes – Bruce Craig. Some readers may remember Bruce from his appearances at the MLM conferences in 2021 and 2022 (   Bruce was born in Chicago … Read more