Multi Level Marketing Misrepresenting Business Model and Disguising it as an Employment Opportunity employment opportunity commission

One thing we have seen in multilevel marketing companies is that they pretend that they are advertising for employment opportunities when in actuality they are simply getting the customer there so they can sell the auto multilevel marketing business. This is a clear misrepresentation of their intentions and it is fraudulent. The Federal Trade Commission understands this and is now proposing a new rule to prohibit such activities and false advertising.

Personally I have watched this tactic being used a coffee shop. The prospect comes in sits down and hands will multilevel marketing recruiter their resume. Next, the multilevel marketing recruiter starts asking all kinds of questions about the qualifications and resume. Next, they start pitching the whole multi level marketing scheme. Below is the Federal Trade Commission’s proposed new rules to stop this tactic;

Proposed section 437.5(m): Employment opportunity

“Proposed section 437.5(m) would prohibit business opportunity sellers from misrepresenting, directly or through a third party, a business opportunity as an employment opportunity. The Commission’s law enforcement experience demonstrates that some business opportunity sellers lure unsuspecting consumers by falsely representing that they are offering employment when, in fact, they are offering vending, work-at-home, or pyramid sales opportunities. For example, in many instances consumers have responded to advertisements seeking sales executives, only to discover that the “position” requires them to purchase equipment or products from the seller and, in turn, to sell the products or to recruit a down line to sell the products for them.”

This tactic must be stopped as the multilevel marketing recruiter to use it are using a bait and switch type fraudulent inducement to get the prospect to the meeting. It is amazing the amount of fraud goes on in the multilevel marketing sector. It is not necessarily the business model that is at fault, but rather than many unethical practitioners who in document down line of these companies. I hope to Federal Trade Commission’s new rules solve this problem in stop fraudulent inducement. Consider this in 2006.

Multi Level Marketing Misrepresenting Business Model and Disguising it as an Employment Opportunity