Question:

Is the pyramid scam legal?

by  |  earlier

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if so, expect a letter within 3 months

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  1. Pyramid schemes are not legal in the United States.  However, there are some pyramid type schemes which call themselves network marketing.  If a company requires you to make an investment but you do not get anything besides "leads" for that money, and they are asking you to contact others and recruit them, even if it calls itself network marketing, it is a pyramid scheme.

    Please don't confuse this with direct marketing or direct selling companies such as Avon, etc.  Direct marketing and direct selling companies, though they have levels, and those above make a certain percentage of profit based on the sales of those below, will always have a legitimate product to sell.  These are not pyramid schemes, regardless of what you might think.


  2. Of course not; don't bother

  3. If you mean a pyramid scheme like "Amway", then yes, it's perfectly legal.

    You're an idiot if you sign up, but it's legal.

  4. Why do you think it's called a scam?

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