Welcome to the premier website for persons investigating MLM

MLM-thetruth.com offers consumer guidance, based on the most extensive independent research on “MLM” as a business model and associated industry practices. Your questions about the advisability of MLM participation should all be answered here, as well as questions about recovery for victims and their families. MLM compensation plans and profitability are thoroughly analyzed, as are distinguishing characteristics separating legitimate direct selling from MLMs, and the deceptions used to promote MLMs, or product-based pyramid schemes.

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DISCLOSURE: Once an avid MLM enthusiast, I rose to the top 1% of distributors for Nu Skin. But after a challenge from my wife, I took a closer look and discovered I was losing over $1,200 a month. This was the beginning of 18 years of research, which has been used by law enforcement, attorneys, the media, universities, and consumers worldwide.   – Jon M. Taylor, MBA, Ph.D.

Consumer Awareness Institute 

Our mission is to seek and share the truth about MLM (multi-level marketing), through research, analysis, and  worldwide feedback. Numerous research  reports by top MLM expert Dr. Jon M. Taylor and Executive Assitant Jonathan Brand, are posted on this web site, including analysis of profitability of over 500 MLMs. (See menu selections above.) Thousands of consumers have thus been guided to make more informed decisions about MLM participation. More…

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News & Developments

A new report of complaints filed with the FTC against MLMs shows a clear pattern of unfair and deceptive practices across the MLM industry. Note especially Exhibit 1 and the observations in Part III.

The International Coalition of Consumer Advocates (ICCA) was recently formed to stand up against MLM abuse. It has petitioned the FTC to protect consumers against unfair and deceptive practices in the MLM industry. The petition and an invitation to post  your complaint is posted on the ICCA website at www.mlmpetition.com. 

Important ebook revised: THE CASE AGAINST MULTI-LEVEL MARKETING AS AN UNFAIR AND DECEPTIVE PRACTICE is available as a free download for consumers, law enforcement officials, attorneys, researchers, and educators. (See description below.)

The evolving influence of the DSA/MLM lobby over the FTC is explained in detail in the report REGULATORY CAPTURE: The FTC's Flawed Business Opportunity Rule. After a corrupt and irresponsible rulemaking proceeding, the Federal Trade Commission recently stepped away from its role as the nation’s consumer watchdog when it issued its final Business Opportunity Rule (BOR). It is actually a good rule except for one thing:  MLM companies –  by far the most prevalent (over 90%) of all business opportunity sellers –  are exempt from having to disclose any information to prospects to protect them from MLM fraud, which (with its inherent flaw of unlimited recruitment of endless chains of participants) is endemic to the industry.  

FREE eBook

The Case against MLM as an Unfair and Deceptive Practice 
 The Complete Guide to Understanding the Flaws – and Proving and Countering the Effects – of Endless Chain "Opportunity" Recruitment, or Product-based Pyramid Schemes.

Download the full text or just the chapters that interest you. Summaries and descriptive table of contents guide you through this imporant reference book.

This book is a summary of thousands of pages of research – and feedback from all over the world – on over 500 MLM programs. You will better be able to define and separate MLM from legitimate direct selling and "business opportunities." You will learn what you need to know about market saturation, high prices of MLM products, costs to recruit a downline, high attrition rates, odds of profiting in MLM (versus other income options), typical misrepresentations used in recruitment, and who are the villains and victims in MLM. You will also discover critical information about the legality and ethics of MLM and why law enforcement is mostly silent on MLM fraud. You will discover what a "good MLM" would look like. You will also learn how to recover losses and what actions you can take to protect you and your loved ones from loss of money, family, and friends from MLM participation.

 

  Plus – Download special report:

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This report documents how the DSA (Direct Selling Association) lobby helped the MLM (multi-level marketing) industry gain an exemption from the FTC’s (Federal Trade Commission’s)  Business Opportunity Rule, leaving consumers unprotected from the most unfair and deceptive of business practices, proving the need for a firewall between regulators and those they regulate – and for public officials with the skill, the will, and the resources to stand up to powerful special interests.

About our research

20 years of research on over 500 MLMs formed the basis of these reports. It's the most extensive research ever done on MLM as a business model, as well as on specific programs. You can download and read all or portions of the ebook described to the left, or you can read the summary linked from the button below.

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Make Your MLM Experience Count:

Your experience in an MLM is extremely important to the current research. It takes only a minute to be included in this important research project that adds to the most extensive andaccurate database of MLM information to date.

Click the survey button below and help get the truth out to regulators and others who need it:  

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On the Lighter Side

Question: How can a person make a small fortune in multi-level marketing?

Answer: Start with a large fortune

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I found the perfect picture for MLM promoters to use to show off the luxury enjoyed by those who make it big in MLM. Nothing like the “time freedom” to do what you want – even living the luxurious life of a boat owner. Go to - http://funnypicturesplus.com/fat-guy-on-a-boat.html#_

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 Please send us your favorite joke or humorous story about multi-level marketing, and we will consider it for the next update of "On the Lighter Side." Email them to me at - jonmtaylor@juno.com

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To order printed copies of The Case against Multi-level Marketing as an Unfair and Deceptive Practice
If instead of an electronic version, you prefer to have us print and mail to you a coil-bound copy of the book, please send us your address and a check or money order in the amount of $65 ($85 for hardbound) to –

Consumer Awareness Institute
291 E. 1850 South
Bountiful, UT 84010

For copies of the "Regulatory Capture" report, send $35. Shipment may take about two weeks.For two-day priority shipment, send an extra $10. 

 
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Help our efforts to increase consumer awareness of MLM flaws and to encourage better enforcement of laws against unfair and deceptive practices. Click Donate

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Disclaimer: These reports are intended purely to communicate information in accordance with the right of free speech. They do not constitute legal or tax advice. Anyone seeking such advice should consult a competent professional who has expertise in endless chain or pyramid selling schemes. Readers are specifically advised to obey all applicable laws, whether or not enforced in their area. Neither the Consumer Awareness Institute nor the authors assume any responsibility for the consequences of anyone acting according to the information in these reports.