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    <font color="0077aa">From: Robert FitzPatrick of Pyramid Scheme Alert &#60;;
    Date: June 30, 2006 4:44:37 PM EDT
    Subject: Action Requested/Write the FTC/Pyramid Scheme Alert/FitzPatrick

    Pyramid Scheme Alert Friends, Patrons and Supporters:

    Many of you have written to ask what you could personally do to help expose or prevent pyramid schemes. There is an action you can take RIGHT NOW.

    The FTC is adopting a new &#34;rule&#34;, similar to the rule that covers franchising. The new rule covers businesses that sell &#34;business opportunities.&#34; Multi-level marketing &#40;MLM&#41; is covered. This is the first time that MLM will be under any FTC &#34;rules&#34; at all. This would cover Amway/Quixtar, Melaleuca, Arbonne, Nuskin, Life Without Debt, International Galleries, EZWealth, Market America, Pre-Paid Legal, Wellness International Network, BioPerformance, Usana, Nikken, and a host of others.

    This new rule focuses on financial &#34;disclosure.&#34; A financial disclosure rule could curb the pervasive deception regarding income averages &#40;MLM causes a net loss for nearly all recruits&#41;, odds of success &#40;99% failure rates in MLMs&#41;, and the fact that almost nobody buys MLM goods other than the salespeople &#40;the disguise of &#34;direct selling&#34; used by pyramid recruitment schemes&#41;


    Please go to the FTC form and state your support for the adoption of rules that require MLMs to make FULL DISCLOSURE. The FTC has a simple on-line form for responding. &#40;;

    We have only until July 17 to send in comments. If you are outside the USA, please write. US-based schemes are harming all parts of the world.

    Pyramid Scheme Alert recommends three key &#34;disclosure&#34; requirements on MLM schemes. You can cut and paste these into the FTC form &#40;; and then add your own experiences and thoughts.</font>}

  • #2
    <font color="0077aa">[b]1. All

    <font color="0077aa">1. All multi-level marketing companies must comply with earnings-claims disclosure rules. No multi-level marketing company should be given an option of making &#34;no earnings claims&#34;.

    2. Multi-level marketing companies must disclose the average retail-based income earned by participants in each level of the hierarchy.

    3. Income disclosures of multi-level marketing companies must include:

    -- The total number of all participants who joined in the past year, not just the so-called &#34;active participants&#34; in one part of a year.

    -- The average NET, not gross, income of participants in each level.

    Average net income is the average of all monies received from the company by participants minus the average of all moneys paid to the company by participants in each level. Expenditures paid to the company include product purchases, renewal fees, shipping costs, books, audio and video tapes, training and motivation seminars, computer fees, etc.

    These recommendations would curb the massive deception about &#34;unlimited income.&#34; They would expose MLMs that are based on pyramid recruiting not retail selling. Such recruitment scams are only disguised as &#34;direct selling&#34; businesses. And they would expose the deceptions of &#34;average income&#34; that exclude business costs and other fees that the schemes get from recruits. When these COSTS are added, more than 99% of all MLM recruits lose money!

    There is more information on the PSA website at

    The official Pyramid Scheme Alert report to the FTC is on the PSA website at

    Please go to the FTC form now. &#40;; It only takes a few minutes. It could save millions of people from being duped, misled and financially harmed.

    Thank you,
    Robert L. FitzPatrick, Pres.
    1800 Camden Rd.
    Ste. 107 #101
    Charlotte, NC 28203

    dave 905-963-3389 24/7 we return calls toll free in North America and over 22 countries.</font>


    • #3
      <font color="0077aa">p.s. [b][

      <font color="0077aa">p.s. If you, a family member, a friend or even the neighbour down the street or a member of your church have lost money, home or friends though MLM or lost friends or family through the aggressive recruitment methods recruits are brainwashed to employ this is your chance to be heard. It takes only a few minutes. The government has finally been pushed hard enough over this appauling situation that it has begun to act. All the expensive, time consuming difficult work over the years has been done. All you need do is fill out the form with you comment.

      Even the honest proponents of MLM should ask for these disclosures so they can be truly informed before they bring in family and friend. In short, the only people opposing this, in my humble opinion, would be those intent on prying money from unsuspecting victims through decept


      • #4
        <font color="0077aa">At the ri

        <font color="0077aa">At the risk of being sued even by individual distributors &#34;pooling their resources&#34; which at 50 bucks each would be enormous.... more on this obvious pyramid fraud that is USANA.

        The offer is still open. I will admit to defamation and millions in damages as a result of calling distributors, liars, gangsters white-collar criminals and thieves. This is, as I have said previously, to anyone who plays golf or bowls, one &#34;mean&#34; handicap. That offers you a perfect game without lifting a ball or club. All USANA and/or distributors need do is prove your &#34;game&#34; is legal. Many people are coming to our site getting the facts and getting turned off USANA and other pyramid &amp; Ponzi schemes.

        dave 905-963-3389 24/7 we return calls toll free in North America and over 22 countries.</font>


        • #5
          <font color="0077aa">&#34;It i

          <font color="0077aa">&#34;It is simply &#34;pulling the curtain back&#34; revealing the &#34;smoke, mirrors and levers&#34; like in the wizard of Oz, and that was inadvertently exposed, if you remember, by a little puppy.</font>


          • #6
            Check out this post by Len Cle

            Check out this post by Len Clements:

            Here&#39;s the latest episode of the Fraud Discovery Institute vs. Usana soap opera. Yes, we&#39;ve got all the classic elements: Deceit, illicit affairs, passion, anger, mistaken identities, shocking revelations, overacting - everything but the sex. Let&#39;s call it Guiding Fright, or All My Distributors, or As the Downline Turns. Or how about Days of Our Jives? Or maybe the Young and Should Pester Less?

            Eh, or maybe not.

            Anyway, Barry Minkow &#40;founder of the FDI&#41;, who produced the original Usana exposť in question, has offered another response to my response to his response to my response to his Usana report. Try to keep up.

            If you need help, here&#39;s a recap:

            Here&#39;s my original Rebuttal Report:

            Here&#39;s Minkow&#39;s first response:

            You can read my response to his response here:

            Now here is his latest response, such as it is:

            And here is my latest counter-response:

            I have challenged Mr. Minkow to provide clear and specific answers to the several direct questions I have posed to him in my previous two responses. If he again chooses not to respond, then I will bow out of this dialogue and the last word will be his. I choose not to debate with someone who refuses to actively and fairly participate in the process.

            Mr. Minkow can evade my questions from afar, under these conditions, but he won&#39;t be able to from the stand, under oath.

            Len Clements
            MarketWave, Inc.


            • #7
              With the assistance of our seniour affiliate Pyramid Scheme Alert several victims of the Amway pyramid scheme have settled the largest law suit against an MLM (pyramid scheme) in history.. over $150,000,000.

              This icon of “direct selling” just announced that it has agreed to pay restitution to consumers and reform costs estimated at over $150 million. The payments are in response to consumer accusations that Amway/Quitar is operating an illegal pyramid scheme. The settlement is the largest in MLM history.

              Three Directors and Advisory Board members of Pyramid Scheme Alert served individually as experts or consultants in this historic class action case against Amway. The suit was filed by the law firm of Boies, Schiller & Flexner.


              dave - CBNow
              Exposing Government, Police and Corporate Corruption
              One Fraud at a Time
              Last edited by CrimeBustersNow; 11-26-2010, 08:16 AM.