Home From the Wires FTC shuts down global pyramid scheme

FTC shuts down global pyramid scheme

| Print |  Email
Monday, January 28, 2013

USA Today: The Federal Trade Commission and three state attorneys general shut down Fortune Hi-Tech Marketing for being a global pyramid scheme that rewards people for recruiting others.

"Today's actions are the beginning of the end for one of the most prolific pyramid schemes operating in North America," said Kentucky Attorney General Jack Conway.

Multilevel or "network" marketers pay commissions to salespeople for the products they sell, on products sold by others they recruit and often bonuses when their teams reach a certain level of sales. The Direct Selling Association, which represents companies that have multilevel compensation plans, estimates there were 15.6 million "direct" salespeople in 2011.

According to the lawsuit against FHTM, its "complicated and convoluted compensation plan" ensures most people make little or no money.

Read more.

 

More Articles

Tight and Loose

September 2014
Wednesday, August 27, 2014
BY JENNIFER MARGULIS

As schools implement more rigorous academic standards, holistic and flexible approaches to K-12 education flourish.


Read more...

Gender Code

September 2014
Tuesday, August 26, 2014
BY COURTNEY SHERWOOD

Janice Levenhagen-Seeley reprograms tech.


Read more...

Startup or Grow Up?

September 2014
Tuesday, August 26, 2014
BY JON BELL

Startup culture is all the rage. Is there a downside?


Read more...

Report Card

September 2014
Tuesday, August 26, 2014

Strong public schools shore up the economy, survey respondents say. But local schools demonstrate lackluster performance.


Read more...

Podcast: Testing for Emotional Intelligence with John Hersey

Contributed Blogs
Friday, September 19, 2014
ivbU3sIXBY TOM COX | OB BLOGGER

How can you tell if you, a peer, a subordinate or a job candidate has the emotional intelligence needed to do well?


Read more...

Downtime

September 2014
Wednesday, August 27, 2014
BY JESSICA RIDGWAY

How State Representative Julie Parrish (House District 37) balances life between work and play.


Read more...

Launch

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

October's Launch article features Soul Kitchen, Easy Company and Slick's Big Time BBQ.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS