From across the pond, my friend, Scam sent me some information about another MLM business that is being accused of being a Pyramid Scheme.
Some quick takeaways:
"Atty. Gen. Jerry Brown sued an Internet-based travel business Monday, accusing it of operating a pyramid scheme and seeking more than $25 million in fines and restitution.
The company, YourTravelBiz.com Inc. of Wood River, Ill., recruited tens of thousands of members with promises they'd earn big returns by setting up personal travel agency websites, the complaint said.
The business is "immensely profitable to a few individuals on top and a complete rip-off for most everyone else," Brown said. "Today's lawsuit seeks to shut down the company's unlawful operation before more people are exploited by the scam."
"The lawsuit in Los Angeles County Superior Court accuses YourTravelBiz.com of enticing individuals to pay more than $1,000 a year in fees with promises that they could become millionaires and qualify for deals available only to professional travel agents.
"In 2007, consumers paid over $103 million to Defendants for websites, but made only $13 million in travel commissions in a business Defendants advertised as the 'easiest way to make money' and earn 'serious income' without any selling," the lawsuit said.
An estimated 62% of 200,000 YourTravelBiz.com participants didn't earn a single travel sales commission in 2007, the attorney general's office said. The California lawsuit is the first by any state against YourTravelBiz.com, said Gareth Lacy, a Brown spokesman."
Will this affect Mary Kay? I know there are differences between Mary Kay and YTB, but what impact might the ruling on this case have on Mary Kay?
Thanks Scam for calling attention to this.
A whole blog devoted to Travel MLMs
Scam's original article on this