Thanks Thanks:  0
LMAO LMAO:  0
Dislikes Dislikes:  0
Ignorant Ignorant:  0
Moron Moron:  0
Results 1 to 7 of 7

Thread: Could the DSA be killing Direct Selling "industry" through inaction? It could!

  1. #1
    Join Date
    May 2012
    Posts
    874
    Post Thanks / Like

    Could the DSA be killing Direct Selling "industry" through inaction? It could!

    Recently, DSA had been pumping out a few articles to both lambast Ackman and his short on Herbalife (cheerfully chimed in by various "stock analysts", and even Kevin Thompson) and to pretend they are helping the American public by explaining the "real" difference between MLM and pyramid scheme. (The articles are in Direct Selling News, their "PR arm"?)

    However, the way I see it, they refused to acknowledge the elephant in the room: product-based pyramid scheme, which renders all their differences worthless. Product-based pyramid scheme, which evolved from both MLM and pyramid scheme, is virtually indistinguishable from MLM except the amount of retail actually done.

    And since most MLM companies don't track actual retail (esp. Herbalife!) they are indistinguishable from Product-based pyramid schemes.

    Yes, I'm assuming there is such a thing as a "legal MLM", and such assumption has landed me plenty of hatemail from MLM... opponents. :)

    But my point is simple... Unless DSA wakes up and tackle this problem, MLM may well cease to exist.

    And that's not exactly a bad thing, is it?

    A MLM Skeptic: MLM Mythbusting: When Will DSA Recognize the Danger of Product-Based Pyramid Scheme to the MLM Industry?
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

  2. Likes 1 Member(s) liked this post
  3. #2
    Join Date
    Jul 2010
    Posts
    1,461
    Post Thanks / Like
    Blog Entries
    128

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    So, the DSA has never heard of front-loading?

    A MLM Skeptic: MLM Basics: Inventory Loading, and front-loading

  4. #3
    Join Date
    May 2012
    Posts
    874
    Post Thanks / Like

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    Must be one of those issues they'd rather sweep under the carpet during the FTC inspection? ;)
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

  5. Likes 1 Member(s) liked this post
  6. #4
    Join Date
    Jun 2010
    Posts
    1,200
    Post Thanks / Like

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    It may be worth considering that the DSA is not a consumer advocate organization nor is it an advocate for individual MLM distributors, it's a trade association that lobbies on behalf of it's member companies. There's nothing wrong with that but it is an important thing to remember.

    For the life of me I can't think of a single good reason why many to most MLM companies do not draw a very clear distinction between customers and distributors but I can think of many not so good reasons to avoid making that distinction. For all of the DSA's notable efforts to provide leadership in industry ethics, defining who is or is not a customer seems to be a bridge too far for them.

    I'm a skeptic, no shame in admitting that but I'm not the only one who suspects that the reason the MLM industry seems allergic to defining who is or isn't a customer is because it would make it far too easy to determine how much money their average affiliates are (or aren't as the case may be) making. But you don't need to be a skeptic to understand how knowing how much a company's average affiliate actually are making might be a useful piece of information to someone considering becoming an affiliate. If the DSA was on the side of the rank and file affiliates I can't see why they wouldn't make providing this information one of the preconditions to a companies membership in their organization.

    But the DSA is not on the side of the rank and file affiliates, it's a trade organization that lobbies on behalf of it's member companies. Most, if not all of those member companies stand firmly against the grosser and most obvious frauds in the industry so the DSA speaks out loudly against them. Most if not all of those member companies have no interest what so ever in standing against the more subtle and less obvious fraud in the industry, so the DSA stands mute.
    So your prophets of finance have fallen on their collective proverbial face, and you hear muffled voices calling: Welcome to the human race.
    You made a killing dealing real estate at NASA selling cemetery plots in outer space til some falling coffins crashed upon your doorstep: Welcome to the human race.

    Open up your heart...

    Welcome to RealScam.com.

  7. #5
    Join Date
    May 2012
    Posts
    874
    Post Thanks / Like

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    Quote Originally Posted by GlimDropper View Post
    It may be worth considering that the DSA is not a consumer advocate organization nor is it an advocate for individual MLM distributors, it's a trade association that lobbies on behalf of it's member companies.
    Exactly, and thus it's to its own interest and the interest of its member companies that they figure out how to draw that line between MLM and pyramid scheme, less the government do it for them (like how FTC just *may* kill Herbalife)

    For the life of me I can't think of a single good reason why many to most MLM companies do not draw a very clear distinction between customers and distributors but I can think of many not so good reasons to avoid making that distinction. For all of the DSA's notable efforts to provide leadership in industry ethics, defining who is or is not a customer seems to be a bridge too far for them.
    Exactly, I've thought quite a bit on this too, I and did pen a blogpost back on February 2013 when FHTM got shut down. DSA basically said "FHTM is not a DSA member that that's all we'll say".

    DSA thus far is not to lead the MLM companies into defining the law, but simply to active preserve the status quo, which is a ton of gray area. The logical conclusion from this is they are afraid what they'll see when they turn on the lights, as it may not be what people wanted to see.

    A MLM Skeptic: Did DSA "throw FHTM under the bus", so to speak?
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

  8. #6
    Join Date
    Jun 2010
    Location
    Tucson, AZ
    Posts
    5,309
    Post Thanks / Like

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    Quote Originally Posted by kschang View Post
    Exactly, and thus it's to its own interest and the interest of its member companies that they figure out how to draw that line between MLM and pyramid scheme, less the government do it for them (like how FTC just *may* kill Herbalife)



    Exactly, I've thought quite a bit on this too, I and did pen a blogpost back on February 2013 when FHTM got shut down. DSA basically said "FHTM is not a DSA member that that's all we'll say".

    DSA thus far is not to lead the MLM companies into defining the law, but simply to active preserve the status quo, which is a ton of gray area. The logical conclusion from this is they are afraid what they'll see when they turn on the lights, as it may not be what people wanted to see.

    A MLM Skeptic: Did DSA "throw FHTM under the bus", so to speak?
    They are not afraid of what they'll see, they're afraid because they know what they will see and then they would have to do something about it contrary to what their membership expects of them.
    EagleOne
    Author: "Robbing You With A Keyboard Instead Of A Gun - Cyber Crime How They Do It" available in soft cover and eBook at Amazon.com

  9. Likes 2 Member(s) liked this post
  10. #7
    Join Date
    May 2012
    Posts
    874
    Post Thanks / Like

    Re: Could the DSA be killing Direct Selling "industry" through inaction? It could!

    Good point, Eagle. They are like Cypher in the Matrix prefering "juicy steak" as the status quo.

    The members are used to running in the gray area and simply be "not egrigiously abusing" as the FTC goes after the egregious ones. As FTC goes after the egrigious ones, they wave the ethics code around and say "see, we have this, we're not like *that*".
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •