Why are laws against pyramid schemes seldom enforced in the case of MLMs? And what explains the silence of victims?
Typically, in law enforcement, the squeaky wheel gets the grease. Officials respond to complaints in a reactive – not proactive – fashion. Victims in endless recruitment chains almost never file complaints. Since MLM recruits must recruit a large number of people to have any hope of earning enough in commissions to recoup their ongoing investments (including required purchases), every major victim becomes a perpetrator. Fearing self-incrimination and/or consequences from or to those they recruited (often close friends and family members) and blaming themselves for their “failure,” they simply drop out and accept their losses. Also, when law enforcement does not act, recruitment prospects assume the MLM is legitimate. No law enforcement, no complaints. No complaints, no law enforcement. MLM may be the most successful con game of all time. Many of the very people who are out recruiting to extend the endless chain of participants (their “downline”) are themselves victims until they run ou
Typically, in law enforcement, the squeaky wheel gets the grease. Officials respond to complaints in a reactive – not proactive – fashion. Victims in endless recruitment chains almost never file complaints. Since MLM recruits must recruit a large number of people to have any hope of earning enough in commissions to recoup their ongoing investments (including required purchases), every major victim becomes a perpetrator. Fearing self-incrimination and/or consequences from or to those they recruited (often close friends and family members) and blaming themselves for their “failure,” they simply drop out and accept their losses. Also, when law enforcement does not act, recruitment prospects assume the MLM is legitimate. No law enforcement, no complaints. No complaints, no law enforcement. MLM may be the most successful con game of all time. Many of the very people who are out recruiting to extend the endless chain of participants (their “downline”) are themselves victims until they run ou
