The pyramid and network marketing lawsuit, also known as a multilevel marketing lawsuit, is a marketing plan that defies the laws of modern society in its attempts to provide for the economic well being of its members. It is a legal scam that defies all attempts by modern courts to provide justice. The pyramid and network marketing lawsuit is nothing more than a legal disguised land grab by those that wish to control the distribution of product through massive recruiting efforts. The lawsuit revolves around an international shipping company that obtains products from countries like China and ships them to US consumers that are supposed to receive these products in good condition. The companies ship these products only in large quantities to these US consumers who pay outrageous prices for the products they receive in the US.

Pyramid Collection Lawsuit

However, the products in these shipments often do not arrive in the state they are intended for in full condition. Thus, when these consumers contact the shipper with complaints that their purchases did not arrive in the state they thought they purchased them in, the company falls under a variety of legal actions. For instance, it is illegal under the Federal False Claims Act for any company to ship any product into the United States unless it meets all of the state requirements for shipping that can be found in any given state. Furthermore, if a company is caught falsely billing the state for products that are in another country, it can be forced to refund all monies paid by the state.

On the bright side, the pyramid and network scheme scams typically only target the most vulnerable among us.

Typically, these schemes are run by those that have a direct tie to the products or services. Thus, it is quite easy to spot a pyramid set up from a mile away. The key is to be able to identify the actual schemes from those that are only operating within legitimate business practices.

Recently, an internet forum talked about the lawsuit against Amway (a well-known network marketing company) because two women were charged with filing a pyramid set up.

After analyzing the complaint, it was noted that in this case, there were three things that were clearly wrong with the complaint. First, the complaint stated that the ladies had joined the pyramid set up in order to receive commissions. Next, they were charged with fraudulently providing a false impression that they would receive commissions from the company and finally, they had to sell more products in order to pay down their debt.

Despite the fact that this company has been around for over one hundred years, the complaint seems pretty weak on their claims of receiving commissions.

This is especially true since the charges against them stated that they did not charge any commissions and yet still lost money. If these products were actually worth very little, one would wonder why they would need to charge money to promote them. Additionally, one wonders if they actually produce any products and whether or not this was a pyramid scheme in the first place.

If you are faced with a pyramid set up complaint, it is important to understand what a pyramid scheme is and how they can be stopped.

A pyramid set up is when there is an infinite number of people who do nothing but recruit new people to the organization so that they can recruit even more new members. If this occurs, it is very easy to fall into a pyramid scheme where you will get no monetary compensation for your work. If you find yourself being sued for the act of pyramid selling, it is imperative that you seek legal counsel as soon as possible.

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