Buyer Beware: What Multi-level Marketing Schemes Don't Tell You when You Sign Up. And, What would "Full Disclosure" Include, if MLMs Were to Tell the Truth? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Consumers often ask: Even if multi-level marketing companies are pseudo-businesses, pyramid schemes and financial traps, couldn't they run legally if they just disclosed how they are structured and operate, the actual financial loss rates, the quitting/turnover rates, the costs, the absence of retailing, the endless chain recruiting requirements and the risks in joining? In other words, couldn't MLMs operate like the tobacco industry that sells a lethal and addictive product? Couldn't MLMs, which promote an "endless chain" income plan that is financially lethal (and addictive for some people), also be lawful if they just printed the whole truth on their package? Click hereto see the proposed disclosures (with explanatory notes) that a MLM would have to provide to each new consumer/prospect if it were to tell the truth. Click hereto see the proposed disclosures (without explanatory notes) that a MLM would have to provide to each new consumer/prospect if it were to tell the truth.
If you xploring MLM opportunities or are already in an MLM program, yo may want to review this...Consumer Advocate I hate to see people get burned by making an emotional decision or because they are either uniformed or misinformed....Be sure to read the proposed MLM Disclosure Law.
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