The business model was really to “recruit business builders who recruit business builders who recruit business builders,” the complaint said. “The drive to recruit, especially when coupled with deceptive and inflated income claims, is the hallmark of an illegal pyramid.”ADIn a statement, AdvoCare took issue with the FTC’s characterization of its multilevel marketing business model as an illegal pyramid scheme. ADYet, as part of the settlement, the company is banned from the multilevel marketing business. This case is further proof of why I’m not a fan of multilevel marketing, also referred to as network marketing. Put “Multilevel Marketing” in the subject line.
Source: Washington Post October 17, 2019 12:01 UTC