CONSUMER
AWARENESS
INSTITUTE Research, education, and advocacy for consumers
Contact information:
Jon M. Taylor, MBA, Ph. D., President
291 E. 1850 South, Bountiful, UT 84010
Telephone: (801) 298-2425; Cell: (801) 671-1870
E-mail: jonmtaylor@juno.com
Web site: www.mlm-thetruth.com
April 30, 2011
For immediate release:
New eBook De-mystifies the Mystique of Multi-level Marketing
Consumer advocates, media reporters, and law enforcement agencies have long wrestled with questions about the legitimacy of multi-level marketing (MLM) - especially while people are desperate for income during this recession. Common questions include: Does anyone actually profit from these schemes, and if so, whom? Are MLM companies (MLMs) legal, or are they skirting the law in most cases? Are MLM products – often “pills, potions, and lotions” – overpriced and merely a front for investing in a disguised pyramid scheme? And are some MLMs more legitimate than others?
I believe it’s essential to get this information out to consumers, since law enforcement is essentially asleep on this issue. For example, the Federal Trade Commission, the nation’s consumer watchdog, has proposed a Business Opportunity Rule that would require sellers of business opportunities to disclose average income of participants and provide a list of references to prospects. But the FTC is yielding to pressure from the DSA (Direct Selling Association – the chief MLM lobbyist), to exempt MLM companies from having to disclose information to prospects that would help them make an informed decision about buying into a program.
For the same reason, victims seldom file complaints with the Better Business Bureau (BBB). Also, consumers are not informed that they may not be getting an unbiased report on an MLM from the BBB. Prominent MLMs and the DSA are “corporate partners” of the BBB. These factors could explain the A+ rating for Amway and other major MLMs, even though (according to research findings) tens of millions of MLM victims suffer aggregate losses totaling tens of billions of dollars every year.
Fortunately, the misinformation promoted aggressively by the DSA and the MLM industry is being counteracted by consumer advocates who have founded non-profit organizations to do independent research and to provide guidance to assist consumers in making informed decisions about MLM participation. A leading consumer advocate in this field is Dr. Jon Taylor, whose research is based on comparative analyses of over 350 MLMs and alternative self-employment options. Dr. Taylor has just completed an e-book The Case for and against Multi-level Marketing, which summarizes thousands of pages of research and 15 years of worldwide feedback from MLM participants. The book – and numerous reports to guide consumers, attorneys, and educators can be downloaded free of charge from his web site at www.mlm-thetruth.com.
Read Next Complaint >>
