The signers of this Petition ask the Federal Trade Commission and other federal and state governmental agencies to investigate the Multi-Level Marketing (MLM) industry and take action to protect people. The MLM industry has proven incapable of regulating itself, is rife with fraudulent and deceptive earnings claims and has caused – and will continue to cause – untold financial harm and social disruption to people who are seeking a legitimate business opportunity. It is not enough to prosecute a few MLM companies after they have had years to deceive hundreds of thousands of participants out of hundreds of millions of dollars, most of which will never be recovered. There should be laws and regulations that require full disclosure of material facts by MLM companies and their high level distributors, and which prohibit MLM compensation plans that reward unlimited recruiting of new distributors over personally retailing products to non-participants.
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