Why should MLM and chain letter concepts be declared illegal in India?

Question

How is "If you get four more people to join this pyramid scheme you get this free" type of Amway thing wrong and baseless in the first place?

a) It is not your job nor should you be expected to "convert" or "procure" other people. You cannot interfere in another peoples affairs unless you have provided them a non-repudiable benefit to them that they would not have got, had it not been for you.

b) You should only be expected to do something that you are capable of, and that can be done by you independently without needing anyone else. If you are to do something then there must have already have been a benefit transferred to you in cash or kind that you would not have got otherwise.

Since MLM and chain letter concepts violate these two basic economic principles. They should be banned. So Amway must be banned.

How many people concur?

Answer 1

I understand your frustration, but education would be a better option that outright banning.

Consider that there is substantial overlap in terms of methods for grass-roots type marketing, and MLMs or chain letters. A financial institution rewards its member for referring a new customer, despite that there's no guaranteed benefit. If you do not want it to be your job to procure additional persons, just don't do it.

If something can only be done by you independently without anyone else, you have eliminated most factory positions and all intermediary production positions. Consider also that most sales positions require a sale before any benefit is received - this is the concept of commission.

I don't think Amway should be banned, although I have trained my dog to pee on the Amway distributor's feet.

Answer 2

Sounds to me like in part (a) you want to ban all forms of marketing/Advertising and in part (b) you'd have to ban Cricket!

Reputable multi-level marketing firms really operate not much differently from any other company. You buy stuff in volume and sell in smaller volumes for a profit. The only difference is you need a "licence" to sell the products, and you can help other people get the "licence" as well. Thus helping them start their own business, yet you profit.

Contrary to your (a) a smart MLMer doesn't "convert" or "procure" people, they simply show the concept and explain the products to other people. Those people then decide for themselves what they want to do - and most decide to do nothing. Some decide to do something, and they can choose to work completely independently as per (b) if they want, but a smart business person knows that teams can usually achieve more than individuals - so they build teams.

But if it's not for you - don't do it! :-)

Answer 3

It SHOULD be illegal here in the US! Pyramid schemes are the surest way of losing money I can think of...short of GIVING it all away (even though you're actually doing that). Chain letters are simply grotesqueries of snail-mail that should be banned out of sheer and utter stupidity.

Answer 4

I agree. The chain letter operates similarly to a virus, attacking the countries' economy. Multi-level marketing adds in a direct assault on social relationships and the bonds holding communities together.

Here are some references that may aid your battle against these horrors.

http://www.silcom.com/~barnowl/chain-letter/bibliography.htm
http://www.vandruff.com/mlm.html
http://www.mlm-thetruth.com/tax_study.htm
http://www.nd.edu/~rbarger/chain-cse.html
http://www.interleaves.org/~rteeter/pyramid.html
http://www.mlmwatchdog.com/Library.html
http://www.fraudsandscams.com/pyramid.htm
http://www.ftc.gov/opa/2002/02/eileenspam1.htm
http://www.stopspam.org/usenet/mmf/
http://www.falseprofits.com/FSLegalityPg.html
http://people.ucsc.edu/~rosewood/writing/essays/pyramidgames.htm
http://www.totse.com/en/bad_ideas/scams_and_rip_offs/brkchain.html
http://members.impulse.net/~thebob/Pyramid.html
http://www.profitclinic.com/MLM/boobytraps/Index.html
http://www.docep.wa.gov.au/ConsumerProtection/scamnet/Scams/PayPal_-_Fast_Easy_M.html
http://rickconner.net/spamweb/chainletteranalysis.html
http://www.stopspam.org/faqs/mlm_vs_pyr.html
http://gsulaw.gsu.edu/lawand/papers/su96/snell.htm

Answer 5

NO CHOICE!!! u need 2 follow e LAW.........Unless u migrate 2 USA!