What is the biggest scam in pyramid selling?

Not every company in the direct selling industry is a pyramid scheme, but the sketchy behavior of a few companies has caught the attention of regulators. Here are five of the biggest companies that have faced accusations of fraud. One is a popular makeup company, and another sells herbal supplements. read more

A pyramid scheme (commonly known as pyramid scams) is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. read more

Amway is the most profitable direct-selling firm in the world, and the company has been a frequent subject of pyramid scheme investigations. In a landmark ruling in 1979, the FTC decided Amway was not a pyramid scheme because distributors were not paid specifically for recruiting new salespeople, setting a precedent for the FTC’s definition of a pyramid scheme that still holds today. read more