Having been to every city in the country over the population of 10,000 in the last four years I have been noticing a trend. I have seen Multi-Level Marketing folks hard selling their business opportunities in public presentations. Listening to these sales pitches in nearly every coffee shop I have step foot and stayed for more than one hour; it is now obvious to me that these MLM people are making at least 25,000 to 40,000 of these presentations per day in public places. This estimate includes presentations being made at college campus dorms and at dinner tables at private homes and residences. During these meetings these MLM sales people say things like they are doing ‘Private Franchising’, never mentioning the words; Multi-Level Marketing, which many consumers are onto now. Instead they use the more well respected name of “Franchising” but franchising is a legal definition and is nothing close to what they are peddling.
The Federal Trade Commission is not planning on doing anything about this abuse of their definitions or unfair business practices. Are these MLM Business Opportunity people too small to go after to raise fees for the agency and therefore not worthy of ROI for the Federal Trade Commission? It appears this is the case and the Multi-level marketers are free to commit borderline fraud. Which begs the question if a business is too large with big gun Washington based attorneys then it is not going to be a target, because the Federal Trade Commission most likely cannot win and if the business is too small then the Federal Trade Commission will not go after them since there is nothing in it for them?
So it is safe to say that if you are below the radar screen, the Federal Trade Commission does not care and if you are fortune 500 you are okay with the Federal Trade Commission because you have political clout? So even though fraud real fraud occurs 25,000 to 40,000 times a day, it is all right because the individuals perpetuating the fraud are too small, because they have no money to pay fines and because they probably do not understand the laws?
Nothing is being done on this issue so for now the MLM sales people are free to use this tactic to mislead their potential down line and ride high on the reputation of the large franchising corporations of our Nation. Think about it.