NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Quote:
"There are millions of victims,” says a pyramid scheme expert named Bruce Craig. “I don’t know why people aren’t interested in this."
...
Quote:
"Assuming, of course, that the F.T.C. has a definition. On Friday afternoon, I called the agency and asked what distinguished an illegal pyramid scheme from a legal direct-selling company. Even having talked to Craig, I found it hard to believe that it wouldn’t have some kind of definition.
A few hours later, I received an email from an F.T.C. public relations staffer. “I’m sorry,” it began, “but we won’t be able to offer you any on (or off) record assistance."
Full story - very concise and a great read, IMHO.
http://www.nytimes.com/2015/01/10/op...mids.html?_r=0
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
No wonder there is so little enforcement. The FTC can't produce a definition????
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Quote:
Originally Posted by
F.T.C. public relations staffer
“I’m sorry, but we won’t be able to offer you any on (or off) record assistance."
Classic government-employee response, unfortunately.
"I have a nice fat government job with a huge salary, great health care, juicy retirement benefits and tons of vacation time.
I don't stick my toe in the water unless someone higher up the power chain tells me to"
SD
.
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Quote:
Originally Posted by
Soapboxmom
No wonder there is so little enforcement. The FTC can't produce a definition????
I'm not sure, but such definitions may fall under various State laws.
Many of the retail/wholesale scams I've dealt with in the past have fallen under State law.
The StateAG for the State in which the company was registered would pursue the case. I'm aware of a few instances in which individuals have reported retail/wholesale scams to the FBI/FTC only to be told that it didn't meet the threshold for an investigation by them (the FBI/FTC) and would therefore be forwarded to the StateAG.
Yet, I've also seen a number of cases in which the FBI/FTC did become involved.
I'd guess that there is some sort of threshold that must be met for involvement by the FTC and that this threshold varies from state to state.
A good example of this would be the numerous 'enter-to-win' contests you see about the net. You may have noticed that most of these type's of contests are not available to residents of the State of Rhode Island.
Why?
Maybe wserra will come around and give some more information. :RpS_smile:
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Quote:
Originally Posted by
shipdit
Classic government-employee response, unfortunately.
"I have a nice fat government job with a huge salary, great health care, juicy retirement benefits and tons of vacation time.
I don't stick my toe in the water unless someone higher up the power chain tells me to"
SD
.
Actually, I find that statement somewhat offensive.
Then again.
I do work for a State University (ie. the Government, yet only a State) and I hope that I wasn't technically a part of your rant.
At least 'technically'. :watching_you: :RpS_wink:
http://i192.photobucket.com/albums/z...psadf80739.jpg
Do you need a tin hat?
http://forums.aria.co.uk/images/smilies/tinfoilhat.gif
:RpS_smile:
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Most states already have legislations outlawing "endless chain" type schemes. Enforcement at FTC / SEC / Postal service legal is actually secondary.
Introduction to Statutes Affecting the MLM Industry by State - Jeff Babener MLM Attorney by Jeff Babener (MLM Lawyer)
And link to specific state's relevant laws: State Listings - Links to MLM Statutes by State - Jeff Babener MLM Attorney
Re: NY Times Writer Asks FTC to Define A Pyramid Scheme - Did They Even Know?
Quote:
Originally Posted by
kschang
We also have a state by state list of pyramid scheme / cash gifting / endless chain recruiting laws in the Cash Gifting forum here on REALSCAM.com
