Welcome to the premier website for persons investigating MLM
MLM-thetruth.com offers consumer guidance, based on the most extensive independent research on “MLM” as a business model and associated industry practices. Your questions about the advisability of MLM participation should all be answered here, as well as questions about recovery for victims and their families. MLM compensation plans and profitability are thoroughly analyzed, as are distinguishing characteristics separating legitimate direct selling from MLMs, and the deceptions used to promote MLMs, or product-based pyramid schemes.
DISCLOSURE: Once an avid MLM enthusiast, I rose to the top 1% of distributors for Nu Skin. But after a challenge from my wife, I took a closer look and discovered I was losing over $1,200 a month. This was the beginning of 18 years of research, which has been used by law enforcement, attorneys, the media, universities, and consumers worldwide. – Jon M. Taylor, MBA, Ph.D.
Consumer Awareness Institute
Our mission is to seek and share the truth about MLM (multi-level marketing), through research, analysis, and worldwide feedback. Numerous research reports by top MLM expert Dr. Jon M. Taylor and Executive Assitant Jonathan Brand, are posted on this web site, including analysis of profitability of over 500 MLMs. (See menu selections above.) Thousands of consumers have thus been guided to make more informed decisions about MLM participation. More…
News & Developments
A new report of complaints filed with the FTC against MLMs shows a clear pattern of unfair and deceptive practices across the MLM industry. Note especially Exhibit 1 and the observations in Part III.
The International Coalition of Consumer Advocates (ICCA) was recently formed to stand up against MLM abuse. It has petitioned the FTC to protect consumers against unfair and deceptive practices in the MLM industry. The petition and an invitation to post your complaint is posted on the ICCA website at www.mlmpetition.com.
Important ebook revised: THE CASE AGAINST MULTI-LEVEL MARKETING AS AN UNFAIR AND DECEPTIVE PRACTICE is available as a free download for consumers, law enforcement officials, attorneys, researchers, and educators. (See description below.)
The evolving influence of the DSA/MLM lobby over the FTC is explained in detail in the report REGULATORY CAPTURE: The FTC's Flawed Business Opportunity Rule. After a corrupt and irresponsible rulemaking proceeding, the Federal Trade Commission recently stepped away from its role as the nation’s consumer watchdog when it issued its final Business Opportunity Rule (BOR). It is actually a good rule except for one thing: MLM companies – by far the most prevalent (over 90%) of all business opportunity sellers – are exempt from having to disclose any information to prospects to protect them from MLM fraud, which (with its inherent flaw of unlimited recruitment of endless chains of participants) is endemic to the industry.