[Home]How Companies Try To Eliminate Liability For Operating Pyramid Schemes

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How Do Companies Avoid Being Branded As A Pyramid Scheme

Many avoid being pyramid schemes in definition, if not in practice

Subjects > Computers > Internet > Web > Web Culture Discussion
Companies often attempt to eliminate legal liability for operating a pyramid scheme by disallowing commissions on any small signup fee. They also stress that all commissions are based on purchase of products. However many programs, in order to tempt people with the idea that they will be able to make large commissions from the initial order places by others they sign up, require purchase of inordinately large amounts of initial products, products that are often not the most popular or useful products, often with the highest possible margins and possibly most inflated prices.

Often the initial membership order must be of a preset shopping cart of items. New members are frequently not allowed to select their own list of products to qualify for the volume of the initial order, or if this is possible to do, most are not told that they can do this.

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