The Fundamental Takeaway from FTC v Vemma
Vemma settlement clarifies FTC’s position on what constitutes a legitimate MLM.
Renowned pyramid scheme expert denounces proposed federal law.
| William Keep, Ph.D.
Dear Member of Congress:
Before acting on H.R. 5230 I urge you to consider the following factual points about pyramid schemes. Each point below can be documented and the evidence dates back decades. As an educator and expert witness, I have taught business courses to undergraduate and graduate students, and assisted government prosecutors in closing pyramid schemes. I believe that successful businesses are vital to our nation’s economic and social well being, and that entrepreneurs energize and revitalize local and even global economies. I also have seen the grave damage caused by pyramid schemes.
Here is what can be documented about pyramid schemes:
Here is what can be documented about the prosecution of product-based pyramid schemes:
Here is why H.R. 5230 (the Bill) will reverse decades of case law and essentially protect product-based pyramid schemes from prosecution:
Industry-sponsored bills have long been part of our federal legislative process. However, the MLM industry and DSA have published statements that undercut their legitimacy in this regard. Admitting publicly to the existence and harm of pyramid schemes, the industry has nonetheless long resisted regulatory oversight. Despite recognizing that pyramid schemes can effectively disguise themselves as legal MLM companies, via this Bill the DSA supports efforts to make identifying pyramid schemes even less likely. Rather than seeking clarity, fear of greater transparency appears to be driving the industry to sponsor and support H.R. 5230. I urge you to stop H.R. 5230 from becoming law.
My opinions are independent, based on my own research and experiences. Except for a current pyramid scheme prosecution that I am assisting, I have no financial ties to any individual or organization that criticizes or supports the MLM industry or any MLM company.
Sincerely,
William W. Keep, PhD
Dean, School of Business
The College of New Jersey
The views, opinions, and positions expressed in this blog post do not necessarily reflect the views, opinions, and positions of TINA.org.
Vemma settlement clarifies FTC’s position on what constitutes a legitimate MLM.
The court left little doubt about this company’s business operations.
Guest blog by Peter Vander Nat and William Keep.