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echo: aust_ads
to: Gregory Bradley
from: Rod Speed
date: 1995-06-09 10:43:30
subject: Pyramid

RS> Sort of. But say with car salesmen, there isnt normally a multilevel
RS> pyramid like you see with a full scale pyramid marketing scheme, tho
RS> thats not to say every single salesman is at the same level. Same with
RS> say insurance reps, you dont get the complex deep pyramid structure.

GB> But there IS in AVON, AMWAY etc. You get paid on the sales
GB> by the person below you, the person below him, the person
GB> below him, the person below him, and the person below him.

Nope, you dont have that setup when people JUST
get their income from that pyramid structure.

GB> Are you now saying that it only becomes illegal when the
GB> such income is an actuality rather than a possibility.

RS> Yes, its what happens that matters, not whats possible.

GB> Then what you are saying is that a scheme is only illegal if it works?

Nope, that its only illegal if it actually happens.

GB> In other words, no scheme can be declared illegal
GB> until after it has made someone a lot of money.

Nope, the law just sets out what is illegal. You exceed the speed
limit, thats illegal. Doesnt matter a stuff if the car CAN exceed
the speed limit or not, its whether someone does actually do so.

RS> Lets take a hypothetical example of someone who advertises here to
RS> etc for the pyramid, down thru multilevels. Now if the original con
RS> man is just getting his income from the suckers below him in the
RS> pyramid, its clearly just a pyramid marketing scheme. Him saying 'oh
RS> no its not, its a multilevel marketing scheme' doesnt satisfy the
RS> law, because if it was that easy there would be no point in making
RS> pyramid marketing schemes illegal, coz everyone would just declaim
RS> that they are network marketing schemes. The law isnt that silly.

GB> If he is paid the money directly by the people 'down line' for
GB> membership of the scheme, it is a pyramid, if he is paid a commission on
GB> the sales of people down the line, from above then it is a network scheme.

Nope, its still a pyramid scheme. The law says so.
The law which makes pyramid marketing schemes illegal
DOESNT say its only the membership fees that count.

--- PQWK202
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