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In May 2001, the FTC filed suit in U.S. District Court in Tulsa, Oklahoma charging that Tulsa-based SkyBiz and its principals promoted a pyramid scheme with claims of quick riches.  The settlement will provide $20 million for consumer redress and will bar all the defendants from participating in pyramid schemes or misrepresenting the amount of sales, income, profits or rewards of any future business venture.

CAMPAIGN FUNDRAISING, MLM OR PYRAMID? - February 2, 2002

An Associated Press story originating from Mobile, Alabama on February 1 reported that Jim Zeigler, a Republican planning to announce his candidacy for the state auditor position on February 9, was ordered by the attorney general's office to immediately halt his fund-raising campaign, labeling it a pyramid scheme.

WEB SHOPPING MALL CHARGED - January 8, 2002

The South Florida Sun-Sentinel reported in early January that the U.S. Attorney's Office in Miami is prosecuting a case involving a purported Internet shopping mall that was revealed to be an illegal pyramid scheme.

GIFTING CLUBS HELD ILLEGAL - January 6, 2002

During the past two years, hundreds of "gifting clubs" have been "cracked" as illegal pyramid schemes by authorities in nearly two dozen states, according to an Associated Press article that ran in the St. Louis Post-Dispatch in January.

The Federal Trade Commission has asked a U. S. District Court Judge to halt the unlawful operations of SkyBiz.com, charging that the operation that purports to sell online tutorials on Web-based products is actually a massive illegal pyramid scheme.

FTC v BIGSMART - $5 MILLION SETTLEMENT - March 27, 2001

Operators of an Internet-based business opportunity that promised easy income for investors in an Internet shopping mall network have agreed to settle Federal Trade Commission charges that their scheme was an illegal pyramid operation.

EQUINOX SETTLES CASE WITH FTC AND EIGHT STATES - April 25, 2000

Consumers who lost money investing in a pyramid scheme they thought was a legitimate multi-level marketing business, will share in as much as $40 million dollars under the terms of a settlement between the Federal Trade Commission and law enforcement authorities from eight states, and William Gouldd and Equinox International of Las Vegas, Nevada.

FTC SEEKS TO HALT ILLEGAL PYRAMID SCHEME - December 13, 1999

The Federal Trade Commission has asked a U.S. District Court Judge to halt the operation of a vast pyramid scheme promoted in part on the Internet, and to freeze the defendants' assets, pending trial, so they will be available for consumer redress.

MAKING CASH SURFING THE NET IN MLM FORMAT A HIT - October 11, 1999

According to a report broadcast on MSNBC in early October, surfing the Internet may now become a lucrative opportunity.

NU SKIN RECEIVES POSITIVE RESPONSE TO INTERNET INITIATIVES - September 28, 1999

Nu Skin Japan, a subsidiary of Nu Skin Enterprises, Inc., recently launched "Distributor Plaza," an enhancement to its web site that allows its independent distributors to place customer orders for products over the Internet.

FTC, 6 STATES SUE EQUINOX INTERNATIONAL - August 9, 1999

The FTC alleged that the defendants operated an illegal pyramid scheme, made deceptive earnings claims, and provided distributors with the means and instrumentalities to violate federal law.

FTC WINS CASE AGAINST DECEPTIVE ADVERTISING OF "SUPER-FORMULA" - July 19, 1999

SlimAmerica ordered to pay more than $8.3 million in consumer redress; post bonds before engaging in future weight-loss or other marketing activities

MARKETERS CHARGED IN CLAIMS ABOUT LAUNDRY DETERGENT SUBSTITUTE - July 1, 1999

Dallas Marketers of Laundry Detergent Substitute Charged with Making False and Unsubstantiated Claims Agree to Settlement with FTC and Six States

PYRAMID VICTIMS NAILED - June 7, 1999

Three victims who lost money in a major pyramid scheme that was busted in Hollywood last month, have been charged with operating their own scam in Ventura County.

DIETICIANS SUPRESS DIVERSITY IN TEXAS - June 2, 1999

Senate Bill 1525 passed in the Texas Letgislature over the weekend.  Because of last minute amendments, the final version has a substantially different impact than the one studied by the legislators.

MARKET AMERICA RUMOR IS BOGUS  -   May 23, 1999

MLM and direct selling companies have been deluged with inquiries from distributors concerning a recent federal court decision involving Market America. Distributors have reported a rumor circulating on the internet and e-mail that, as a result of the Market America case, MLM companies may not enter into "exclusive dealing" agreements with their distributors. As it turns out, the decision in the Market America case does not stand for this proposition, and distributors have been misinformed.  Actual case - April 15, 1999.

PROCTOR & GAMBLE LAWSUIT AGAINST AMWAY DISMISSED - May 16, 1999

Reuters reports that a federal judge in Houston dismissed a Proctor & Gamble lawsuit against rival Amway Corp. in mid-May.  The suit accused Amway of instigating "false satanic rumors" against Proctor & Gamble that cost the company millions of dollars in lost sales.

MICHIGAN ATTORNEY GENERAL'S OFFICE WARNS AGAINST
INTERNET PYRAMID SCHEME  -  May 2, 1999

According to a report in the Detroit News, participants could be charged with a felony for buying into the program which is being classified as a 'wealth redistribution' scheme.  The promotion boasts that participants can turn $120 into more than $116,000 without selling a thing and goes on to describe an internet based "business" which has been considered by state officials to be an illegal pyramid selling scheme.

AVON PRODUCTS SUPPORTS RESOLUTION OF DIRECT SELLING ISSUE IN CHINA  -  April 16, 1999

Avon Products, Inc. (NYSE:AVP) today welcomed the agreement reached last week between China and the United States to remove all market access restrictions on direct selling in China by January 1, 2003, including the current ban on direct selling imposed last April.

PYRAMID SCHEME NETS ARRESTS IN LOS ANGELES   -  April 27, 1999

The Los Angeles Times reports that five people were arrested at the Hollywood Palladium on April 26 during a meeting of almost 1,000 potential participants in what authorities describe as a pyramid scheme. The five were booked on suspicion of operating an "endless chain", which is a felony according to LAPD Detective Greg Schwien of the Financial Crimes Division.

DISTRIBUTOR WINS DAMAGES AGAINST HERBALIFE   -  November 20, 1998

According to The Arizona Republic, a distributor for Herbalife International Inc. has been awarded $620,000 in damages and the right to future income from her business by a Maricopa County Superior Court jury, after a month-long trial that gained nation-wide attention.