Patrick Pretty EDITORIAL: With Conviction Of Zeek’s Burks, Another Senior MLMer Faces Prospect Of Decades In Prison

Patrick Pretty Zeek Rewards Authority Shares Deep Editorial With Info From ASDUpdate


UPDATED 4:31 P.M. EDT U.S.A. Zeek Rewards was always inexcusably horrid, fueled by serial willful blindness and the sort of practiced disingenuousness that props up so many MLM “programs.” In dollar volume, Zeek ended up being more than seven times larger than the $119 million AdSurfDaily MLM Ponzi scheme that put ASD operator Andy Bowdoin in federal […]

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Patrick Pretty Reposrts: Guaranteed50KIn30Days’ Was ‘Pyramid Promotion Scheme’: Nebraska Attorney General

Nebraska Attorney General, Doug Peterson Stamps Pyramid Brand On Guaranteed50KIn30Days


“Guaranteed50KIn30Days” and associated programs were “pyramid promotion schemes” that depended on recruitment rather than product sales to “ultimate-user consumers,” investigators from the office of Nebraska Attorney General Doug Peterson said today. The PP Blog wrote about the schemes in July 2013 — in part because they were being pushed by affiliates who also pushed the Profitable […]

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FTC Settlement with Herbalife—OMG!

Spenser Reece Legal Perspective: What Does It Mean?

New York Post

Network marketing is in the midst of a rapidly advancing Orwellian era. It’s been slow to develop, starting in 1996 when the Ninth Circuit Court of Appeals issued its decision in Webster v. Omnitrition, but it’s snowballed in the past two years.  Today the snowball grew exponentially with the announcement that the Federal Trade Commission and Herbalife have reached a settlement agreement.

Watch for detailed updates and analysis on the settlement. We’ll break it down into many little pieces to determine how it will impact your business. But today we just have time for a broad sweep so I’m just going to address some critical topics.

The obvious first question is: “Does this settlement affect my business?” It’s certainly an important question. After all, the FTC was investigating Herbalife and analyzing Herbalife’s program, so why should it apply to any other company? The answer is two-fold. There’s the technically correct answer, and the real-world practical answer. The technically correct answer is that the FTC settlement with Herbalife has no binding impact on any other network marketing business. The real-world answer is quite different.  The changes that Herbalife must implement offer a clear roadmap to the standards that the FTC expects all direct sellers to conform, and those are the standards that it will pursue in future cases against direct sellers.


Patrick Pretty Reports: REPORTS: TelexFree Figure Murdered In Brazil


3RD UPDATE 3:17 P.M. EDT U.S.A. Dorian da Silva Santos, described by Bloggers and in media accounts as a politician and promoter of TelexFree in Brazil, reportedly has been found murdered execution-style in the Brazilian state of Bahia. The news adds to a disturbing series of events that, since at least 2013, have become part of […]

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Why Do Those Companies Fail?

Here are several of the areas where those start-ups in the direct selling industry fail:


There are not so many direct selling companies that start their journeys as big businesses from day one. Almost all are small and medium-sized enterprises (SMEs). In fact, many of them start as family-owned businesses. And they come with their limited resources and their own weaknesses, as well.

Here are several of the areas where those start-ups in the direct selling industry fail:



MLM Legal Perspective: Moving Forward, Here’s What the FTC’s Order Requires Herbalife to Do

Kevin Thompson Shares His Legal Insight To The Herbalife Settlement


After a two year investigation, Herbalife has agreed to pay a $200 million fine to the FTC and act in accordance with prescribed measures. With this morning’s announcement of a settlement, investors and proponents/opponents of the MLM industry alike are attempting to process what it all means for the Company’s future. Before we provide you an in-depth analysis of the stipulations found within the FTC’s Order for a Permanent Injunction and Monetary Judgment, it’s important to remember that these prescribed actions only apply to Herbalife and not multi-level marketing companies collectively. In response to a question in which she was asked what kind of implications the settlement will have on the network marketing industry , FTC Chairwoman Edith Ramirez stayed mum on its long-term implications and stated rather plainly that the FTC would soon be providing additional guidance on legitimate network marketing companies. That aside, let’s get down to business and clarify what the FTC’s order does and does not say.


Macro Perspective