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Message: <blockquote data-quote="echameera" data-source="post: 2374963" data-attributes="member: 111626">Criticism of MLMThe <a href="http://en.wikipedia.org/wiki/Federal_Trade_Commission" target="_blank">Federal Trade Commission</a> (FTC) issued a decision, <a href="http://en.wikipedia.org/wiki/In_re._Amway_Corp." target="_blank">In re. Amway Corp.</a> in 1979, which indicated that multi-level marketing was not <a href="http://en.wikipedia.org/wiki/Illegal_per_se" target="_blank">illegal per se</a>. However, <a href="http://en.wikipedia.org/wiki/Amway" target="_blank">Amway</a> was found guilty of <a href="http://en.wikipedia.org/wiki/Price_fixing" target="_blank">price fixing</a> (by requiring "independent" distributors to sell at the low price) and making exaggerated income claims.<a href="http://en.wikipedia.org/wiki/Multi-level_marketing#cite_note-inreAmway-9" target="_blank">[10]</a>The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".<a href="http://en.wikipedia.org/wiki/Multi-level_marketing#cite_note-10" target="_blank">[11]</a> In April 2006, it proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers to make an informed decision about their probability of earning money.In March of 2008, the FTC removed Network Marketing (MLM) companies from the proposed Business Opportunity Rule."The revised proposal, however, would not reach multi-level marketing companies or certain companies that may have been swept inadvertently into scope of the April 2006 proposal."<a href="http://en.wikipedia.org/wiki/Multi-level_marketing#cite_note-11" target="_blank">[12]</a> Criticisms have been raised against MLM programs for being <a href="http://en.wikipedia.org/wiki/Cult" target="_blank">cult</a>-like in nature. Some MLM programs feature intense motivational programs, which can be hard to distinguish from cult propaganda. So-called corporate cults are businesses whose techniques to gain associate commitment and loyalty are in some ways similar to those used by traditional cults. Amway associates are sometimes cited as an example of such devotion. <a href="http://en.wikipedia.org/wiki/Multi-level_marketing#cite_note-12" target="_blank">[13]</a></blockquote>

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