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CONSUMER ALERT

  Avoid dealing with salespeople who:

  • Disparage other products or firms.
  • Confuse you, abuse your trust, or exploit your lack of experience orAlert knowledge.
  • Try to make you cancel a contract made with another salesperson.
  • Falsely tell you they're taking a survey or you've just won a contest.

  Avoid dealing with companies that:

  • Charge a substantial entry fee (more than the cost of a sales kit).
  • Pressure you to purchase large quantities of products.
  • Do not repurchase inventory if you decide to leave the business.
  • Sell few or no products to consumers.


Things you should know about pyramid schemes

  • They are losers. Pyramiding is based on simple mathematics: many losers pay a few winners.
  • They are fraudulent. Participants in a pyramid scheme are, consciously or unconsciously, deceiving those they recruit. Few would pay to join if the diminishing odds were explained to them.
  • They are illegal. There is a real risk that a pyramid operation will be closed down by law enforcement officials and the participants subject to fines and possible arrest.
                            

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