One of the many things wrong with the MLM business model is decentralized law avoidance.
Here is an example of that. Nuskin sells a variety of vitamin pills through a multi-level structure. Their main product is some exotically packaged pills called "lifepak nano" (punctuation as on the pack). Here is a photograph of a pack of pills...
They are just vitamin pills - there is little that is "special" about them - well except that as the pack says - they have "enhanced molecular delivery" whatever that is...
That and the fact that 60 packets cost $178.00 - it's recommended you take Two (2) twin sachet packets daily.
So a one month supply of Nano enhanced vitamin pills is going to set you back $178.00!!!
Here is a list of ingredients...
As you can see, nothing out of the ordinary there. But on the Nuskin website they make some strong claims...
Nourishes and protects cells, tissues, and organs in the body with the specific purpose to guard against the ravages of aging each day of your lifespan*
Superior bioavailability with CR-6 LipoNutrients™ enhances uptake from the gut into the bloodstream and body for maximum anti-aging benefits*
Advanced anti-aging formula helps protect the body with key nutrients such as NanoCoQ10™ and nano carotenoids*
Helps maintain normal inflammatory responses in the body*
Feeds and helps protect the brain with DHA and EPA (two CR-6 LipoNutrient™ softgels contain the same amount of EPA and DHA as two MarineOmega softgels)*
Offers superior DNA protection against damaging free radical attacks by providing the body with important antioxidants and phytonutrients such as alpha-lipoic acid and catechins*
Protects cell health with an antioxidant defense network*
Helps protect cardiovascular health with a comprehensive blend of omega-3 fatty acids and other nutrients
Provides comprehensive bone nutrition support*
Promotes healthy immune function*
Supports normal blood sugar metabolism*
Corrects nutritional deficiencies*
You will note that every one of these claims is marked with an asterisk. The asterix is as follows:
*These statements have not been evaluated by the Food and Drug Administration. this product is not intended to diagnose, treat, cure, or prevent any disease.
The company is careful on its website not to produce any literature that violates Food and Drug Administration law. You can't sell pills in America in breach of FDA rules without risking unpleasant legal complications.
But this is MLM - and you can bet the distributors are not so careful. These little pills are sold as miracle cures - and Nuskin distributors are the snake oil salesmen of old - blithely violating FDA law and desperately difficult to prosecute because the sales force are not employees of the company.
Decentralised law avoidance is just one of many unique features of most MLMs.
Good and bad MLMs: Pampered Chef, Herbalife and Nuskin