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

Photo log: Murray's Pharmacy

The Latest
Friday, July 17, 2015
OBM-Heppner-Kaplan thumbBY JASON KAPLAN

Photographer Jason Kaplan takes a look at Murray's Pharmacy in Heppner.  The family owned business is run by John and Ann Murray, who were featured in our July/August cover story: 10 Innovators in Rural Health Care.


Read more...

Reader Input: Fair Play

May 2015
Wednesday, July 15, 2015

Former Governor John Kitzhaber's resignation in February prompted some soul searching in this state about ethical behavior in industry and government.


Read more...

Loose Talk

July/August 2015
Friday, July 10, 2015
BY AMY MILSHTEIN

When gossip crosses the line.


Read more...

Department of Self-Promotion

Linda Baker
Wednesday, June 17, 2015

061715-awards1Oregon Business wins journalism awards.


Read more...

Marijuana law ushers in new business age

The Latest
Tuesday, June 23, 2015
062315panelthumbBY KIM MOORE | RESEARCH EDITOR

Oregon’s new marijuana law is expected to lead to a bevy of new business opportunities for the state. And not just for growers. Law firms, HR consultants, energy efficiency companies and many others are expected to benefit from the decriminalization of pot, according to panelists at an Oregon Business breakfast meeting on Tuesday.


Read more...

Portland’s long-distance bike commuters

The Latest
Wednesday, July 29, 2015
Matt KellyresizethumbBY KIM MOORE | RESEARCH EDITOR

Pushing the extreme.


Read more...

Greenpeace prevents Shell oil ship from leaving Portland

The Latest
Thursday, July 30, 2015
hangersBY JASON E. KAPLAN | STAFF PHOTOGRAPHER

Activists have suspended themselves from the St. Johns Bridge in Portland, slowing an icebreaker's departure for the Arctic.


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