How are these fashion MLMs still allowed to run legally? (1 Viewer)

[nekolecrimson]

These things are disgusting and predatory as h---

 

[Ahsoka]

In the US, there’s legal protection based on race, sex, sometimes sexual orientation, and other stuff. But there’s no laws protecting you based on desperation and gullibility Otherwise how would presidents get elected

 

[nekolecrimson]

But there’s no laws protecting you based on desperation and gullibility Otherwise how would presidents get elected

I mean you have a point there. It is just odd how many people fall for these scams. Maybe I am just side-eying them more because I used to work in fraud prevention.

 

[Ahsoka]

I mean you have a point there. It is just odd how many people fall for these scams. Maybe I am just side-eying them more because I used to work in fraud prevention.

I feel like it’s becoming less common to fall for them just because more people have heard of them now. Hopefully they die out eventually

 

[centen]

Assuming the title is a real question: in the United States, it becomes an illegal pyramid scheme if you get paid for recruiting new members into the scheme. Most MLMs skirt this by the participants earning via (1) having a real product that actually gets produced and sold, and (2) making money from recruited members, but only after they have sold product, not from the act of recruitment itself.

A lot of MLMs have still been successfully sued for having too much of the income coming from recruitment-related activities (including LulaRoe), but it's one of those cases that it's not technically illegal.

 

[dark_tranquility]

it is concerning and sad imo