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NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
"There are millions of victims,” says a pyramid scheme expert named Bruce Craig. “I don’t know why people aren’t interested in this."
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"Assuming, of course, that the F.T.C. has a definition. On Friday afternoon, I called the agency and asked what distinguished an illegal pyramid scheme from a legal direct-selling company. Even having talked to Craig, I found it hard to believe that it wouldn’t have some kind of definition.
A few hours later, I received an email from an F.T.C. public relations staffer. “I’m sorry,” it began, “but we won’t be able to offer you any on (or off) record assistance."
Full story - very concise and a great read, IMHO.
http://www.nytimes.com/2015/01/10/op...mids.html?_r=0
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
No wonder there is so little enforcement. The FTC can't produce a definition????
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Originally Posted by
F.T.C. public relations staffer
“I’m sorry, but we won’t be able to offer you any on (or off) record assistance."
Classic government-employee response, unfortunately.
"I have a nice fat government job with a huge salary, great health care, juicy retirement benefits and tons of vacation time.
I don't stick my toe in the water unless someone higher up the power chain tells me to"
SD
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"No one in this world, so far as I know - and I have researched the records for years, and employed agents to help me - has ever lost money by underestimating the intelligence of the great masses of the plain people" - H. L. Mencken
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Originally Posted by
Soapboxmom
No wonder there is so little enforcement. The FTC can't produce a definition????
I'm not sure, but such definitions may fall under various State laws.
Many of the retail/wholesale scams I've dealt with in the past have fallen under State law.
The StateAG for the State in which the company was registered would pursue the case. I'm aware of a few instances in which individuals have reported retail/wholesale scams to the FBI/FTC only to be told that it didn't meet the threshold for an investigation by them (the FBI/FTC) and would therefore be forwarded to the StateAG.
Yet, I've also seen a number of cases in which the FBI/FTC did become involved.
I'd guess that there is some sort of threshold that must be met for involvement by the FTC and that this threshold varies from state to state.
A good example of this would be the numerous 'enter-to-win' contests you see about the net. You may have noticed that most of these type's of contests are not available to residents of the State of Rhode Island.
Why?
Maybe wserra will come around and give some more information.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, and not those who know much, who so positively assert that this or that problem will never be solved by science. -C. Darwin
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Ignorance more frequently begets confidence than does knowledge: it is those who know little, and not those who know much, who so positively assert that this or that problem will never be solved by science. -C. Darwin
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Most states already have legislations outlawing "endless chain" type schemes. Enforcement at FTC / SEC / Postal service legal is actually secondary.
Introduction to Statutes Affecting the MLM Industry by State - Jeff Babener MLM Attorney by Jeff Babener (MLM Lawyer)
And link to specific state's relevant laws: State Listings - Links to MLM Statutes by State - Jeff Babener MLM Attorney
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Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Originally Posted by
kschang
We also have a state by state list of pyramid scheme / cash gifting / endless chain recruiting laws in the Cash Gifting forum here on REALSCAM.com
The only thing necessary for the triumph of evil is for good men to do nothing
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