Pyramid Schemes

Have you ever been tempted by a multilevel marketing job? Multilevel marketing is a system of selling goods or services in which you sign up other people to work for you, while they recruit others to work for them. You earn commissions on your sales and on the sales of your recruits. Similar to a multilevel marketing system, pyramid schemes promise investors large profits primarily based on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. It is against the law to promote or participate in a pyramid scheme.

Secret Sister Pyramid Scheme

Scammers are now utilizing social media to promote pyramid schemes. Watch to learn more about online scams.

Protect Yourself From Pyramid Schemes

  • Be wary of plans relying on new recruits

    Be wary of plans claiming you’ll make money through commissions on sales from new recruits, rather than through your own sales.

  • Avoid purchasing inventory to get started

    Avoid plans that pay commissions or ask new distributors to purchase expensive inventory.

  • Don't pay promoters

    Don’t pay promoters or sign contracts in an “opportunity meeting” or any other high-pressure situation.

  • Check with the Better Business Bureau

    If you are considering a multilevel marketing job, check with your local Better Business Bureau and state attorney general first.

Have You Witnessed This Scam?

If you’ve encountered an illegal pyramid scheme, and the U.S. Mail® has been used in any way, we want to help. Please report the crime.

Report Now