Document Type
Perspective
Publication Title
Emory Corp. Governance & Accountability Rev. Perspectives
Publication Date
1-1-2015
Abstract
In light of recent litigation against Vemma Nutrition Co. by the Federal Trade Commission, Jeremy Pineres examines the compensation structures of multi-level marketing companies with a focus on the various shortcomings of these companies that lead to quasi-pyramid scheme business practices. During a time where the internet provides consumers instant access to competitive pricing, multi-level marketing companies nevertheless offer products and services that are largely unsellable. Generally, the price and quality of these marketed products and services are unable to compete with store-bought items. When combined with a compensation structure that financially rewards and encourages new member recruitment over bona fide retail sales, the resulting business practice resembles a pyramid scheme in all but its name. After analyzing the various factors that create and encourage the questionable practices of these companies, Pineres forecasts how the court's ultimate ruling could form the basis for several changes within the industry.
First Page
2021
Volume
3
Recommended Citation
Jeremy Pineres,
The Multilevel Marketing Misnomer: How the Federal Trade Commission May Change Network Marketing,
3
Emory Corp. Governance & Accountability Rev. Perspectives
2021
(2015).
Available at:
https://scholarlycommons.law.emory.edu/ecgar-perspectives/38