» CONSUMER RIGHTS AND MULTILEVEL MARKETING (PYRAMID) SCHEMES
Host: www.maine.gov
prohibiting many forms of multi-level
marketing businesses such as pyramid
clubs. If a multi-level. marketing scheme
is in violation of this statute ...
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Pyramid Schemes: Investor Beware! Pyramid Schemes:
Source: www.oag.state.md.us
Topic: Multilevel Marketing
Sort Desciption: A multilevel. marketing plan is an illegal pyramid scheme how- ... whether something calling itself a multilevel. marketing company is in reality a pyramid ...
Content Inside: Many people are looking for ways to earn extra money. Some are attracted to pyramid schemes that promise impressive profits for little effort. However pyramid schemes are risky and they are illegal in Maryland and every other state. In a typical pyramid scheme a person pays a set amount to the promoter to join the pyramid and then convince others to do the same. Each person supposedly will have the opportunity to advance to the top position in the pyramid and receive payments from numerous other persons. These scams are called pyramids be- cause part of each new participants investment goes to other earlier investors. There are often several levels of investors with only a few investors at the top level and an increasing number of investors in the newer lower levels. In order for everyone in a pyramid scheme to profit there would have to be a never ending supply of new participants who are willing ready and able to pay money into the scheme. Inevitably how- ever the scheme runs out of potential partici- pants leaving a large number of investors empty- handed. Anyone who establishes promotes or advertises a pyramid scheme in Maryland is committing a criminal offense that may result in a fine of up to $10000 or a prison sentence of up to one year. Pyramid schemes can take a variety of forms. One example is a Gifting Club or Network. These clubs are structured to pay off early inves- tors with money coming in from later inves- tors. Often these gifting clubs are promoted among friends neighbors co-workers and even church groups. Because there is no source of funds other than money from new investors and because the number of new investors even- tually dries up these gifting clubs are pyramid schemes and eventually collapse. A legitimate gift does not come with strings attached and is not an investment opportunity. Multilevel or Network Mar- keting Plans Pyramid schemes also may try to pass themselves off as mul- tilevel marketing plans or network mark ...
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» Multilevel marketing and antifraud statutes: Legal enterprises or ...
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Multilevel marketing and antifraud
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» Multi-Level Marketing
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Registrants may prescribe and dispense
Multi-level Marketing or Network
Marketing. (hereinafter called MLM)
products as part of their professional
practice ...
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