Gig Harbor, Washington
1.3K views 35 comments

illegal "pyramid scheme". Thats all you need to know. An illegal "pyramid scheme" is a form of multi-level marketing where the product or service is only of secondary importance, or there may be no product at all in the case of gifting or blessing scams. To join, you must pay some type of initial investment that gives you the right to recruit others into the company. For each person you bring into the company you receive money, or other bonuses or move closer to your big pay day Therefore, your earning potential depends primarily on how many people you sign up, not how much merchandise is sold.

Washington law declares the following practices illegal under the Anti-pyramid Promotional Schemes Act:

(1) No person may establish, promote, operate, or participate in any pyramid scheme.

(2) A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the scheme, does not change the identity of the scheme as a pyramid scheme.

(3) It is not a defense under chapter 65, Laws of 2006 that a person, on giving consideration, obtains goods, services, or intangible property in addition to the right to receive compensation, nor is it a defense to designate the consideration a gift, donation offering, or other word of similar meaning.

What is meant by an "investment"?

An investment includes any money paid to enter the venture. Though it may be called a "membership fee" or a "bookkeeping charge", the law still considers it to be an investment. And an inventory of products you must buy to resell is also considered an investment. Giving your time or talents, or buying demonstration samples at cost, are not considered investments.

Review about: Pyramid Scheme.

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Anonymous
#805264

If you were to actually read into the company a bit more it shows that when you sign someone up you DO NOT make any money off of an individual signing up.Money is only made (a small percentage) of when the person you brought on starts to make money by bringing in other customers.

Above you all are saying that for it to be a "Pyramid Scheme" when you bring someone on and they pay their fees you make a Determined amount or percentage for every person coming on board.By the looks of it not the typical "Pyramid Scheme" but a decently thought out plan

Huh
to Anonymous Miami, Florida, United States #868067

Then where are the bonuses from?

Eyes wide open
#555116

"A fool and his money are soon parted"

"A sucker is born every minute"

These are the two founding principles behind the success of ACN. Everything else is a clever, 'legally' structured business model using even more clever word games. Ethical? Absolutely not. Do their tactics work and defy the consumer protection authorities? Yes. "You can't touch this". O.J. Simpson committed murder and his bank of lawyers successfully defended him.

Want a $500 dollar investment the touts the same dream but doesn't require you to swindle family, friends and gullible strangers, and actually funds community projects? Buy $500 worth of lottery tickets - about the same odds for success and a lot less work! And oh yeah, someone always wins too...who knows but next time it could be you. Ah limitless wealth and riches, here I come!

To coin ACN reps' favourite testemonial expression, joining ACN is "a no brainer". Go ahead. Make my day. Join ACN but please be sure to check your brain at the door and suspend all rational thinking. No brainer indeed.

Annon
#509249

Karinita,

To be honest, I think you would be wasting your time and money in an attempt of a legal complaint against ACN Inc. They operate within consumer laws and can they get any higher legal representation they what they have? Take a look at acnintegrity dot com

Karinita
#508215

Do you know where people could fill out a legal complain against ACN Inc?

Anonymous
#493828

"There can be confusion between an acceptable multilevel distribution marketing scheme and a pyramid scheme.Both will exhibit a pyramid structure, but a multilevel marketing scheme will reward participants for the sale of genuine products by them or the people they have brought into the scheme.

Rewards are based on product sales not for enlisting others.Goods sold must be genuine products; the type consumers buy from time to time.

Anonymous
#493827

Is ACN a pyramid scheme.

ACN has had to defend itself from others calling it a pyramid scheme, however this has most likely happened because of the power filled industry of telecommunications and essential services that it is involved in. ACN has won every time regarding this in the court of law.

A few key extracts to clear up any confusion

A pyramid type practice is similar to a chain letter operation. Such a program is inherently deceptive for the seemingly endless chain must come to a halt inasmuch as growth cannot be perpetual and the market becomes saturated by the number of participants....Thus many participants are mathematically barred from ever recouping their original investments, let alone making profits.

"There can be confusion between an acceptable multilevel distribution marketing scheme and a pyramid scheme. Both will exhibit a pyramid structure, but a multilevel marketing scheme will reward participants for the sale of genuine products by them or the people they have brought into the scheme. Rewards are based on product sales not for enlisting others. Goods sold must be genuine products; the type consumers buy from time to time.

Pyramid selling may involve the pretence of selling goods but often they are over-priced, of poor quality, difficult to sell and of little value. But promotion and sales are of little importance; the target is recruiting people and collecting their fees."

Annonymous
#493818

IBO's can make 10% of their own customers, month after month after month

rick
to Annonymous #898279

It's up to 10%. Clarify that.

Anonymous
#492741

ACN Mark, how can you make $1000/month money without recruiting anyone, when you get .5% of commission on services? The math doesn't work, if you haven't gotten anyone signed up under you in the ACN scheme, then you HAVE to have gotten $200,000 per month in services signed up to make $1k/mo!! Your claim smells fishier than a rotting whale!

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