Do you want to know the list of blacklisted MLM companies and fake pyramid schemes to avoid?
Are you fed up with falling for the marketing gimmicks and deceptive claims made by multi-level marketing (MLM) businesses?
Are you prepared to take charge of your financial destiny and avoid getting caught up in misleading company tactics?
Then put down your search now!
The blacklisted MLM businesses mentioned in this article will open your eyes to the firms to keep away from.
These businesses have received warnings about their unethical activities, deceptive strategies, and dubious business concepts.
It’s time to arm yourself with all the information and safeguard your hard-earned money against falling prey to these infamous MLM business scams.
What is MLM Business (Multi-Level Marketing Business)?
MLM is a business concept specializing in recruiting several individuals to help sell their goods or services via a network of dealers or marketers.
It is also a network of promotional activities, referral marketing, and pyramid selling.
Participants in an MLM business receive commissions from both the sales they made and the sales of the distributors they introduced into the network business.
So, as a result, there are many compensation levels, which is one reason it’s called “multi-level.”
List of Blacklisted MLM Companies to Avoid
Here is the list of blacklisted MLM companies to avoid:
1. Crowd1
Crowd1, founded in 2019 by Sterios Piskopianos and Jonas Werner, is on the top list of blacklisted MLM companies to avoid.
It specializes in high-tech community marketing operations.
To earn from Crowd1, you must buy an “Education Package” straight from the business.
The activities being carried out in this business show it is a Ponzi scheme.
It is believed by experts that the company’s packages are goods that are mainly to earn affiliate commissions.
Crowd1 works just like a Ponzi scheme where they use the new member’s money/funds to pay the members before them, and that’s how it continues until it eventually folds.
2. Primerica
Primerica has been in operation for about 45 years.
It provides banking, insurance, and investment services for middle-class families in the US and Canada.
Although the firm has been criticized for how they operate, it has over 130,000 independent agents in North America.
However, many detractors insinuate that the firm needs to recruit representatives that are qualified as well as have gained a lot of insurance experience to market the products.
In 2014, the company consented to pay the sum of $9.3 million to resolve 238 lawsuits alleging that the company took advantage of Florida Republic workers by getting them to sell their government-secured retirement accounts to invest in high-risk Primerica.
3. OneCoin
OneCoin was a cryptocurrency-based Ponzi scheme created by Ruja Ignatova from Bulgaria.
The company was built in 2014 but, unfortunately, was shut down in 2017.
They sold mainly plagiarized course materials as an MLM product, and customers were compensated for bringing new customers.
When you purchase a course package, they guarantee you a mining token.
However, they did not have the OneCoin blockchain technology as promised.
This resulted in a lack of market value, as the tokens could not be used to purchase anything.
The company hit the rock in 2017.
4. Meta Force
Meta Force was created by a notorious con artist named Lado Okhotnikov, who was also responsible for creating another one called Forsage.
It’s no news that this Lado has been responsible for creating six Forsage Ponzi schemes, with which the unsuccessful Forsage BUSD, a smart crypto contract, is the event of all.
The website claimed Meta Force only permits their associates to promote its affiliate membership, but does not offer any resaleable goods and services.
Okhotnikov, known for starting various Ponzi schemes with the name Forsage, has received several warnings from the governments of some countries for running multiple Ponzi schemes.
5. Younique
Younique is a cosmetic company that was established in 2012.
For several years, cosmetic giant Coty owned a 60% stake in the company.
It was gathered in 2019 that the company was accused of having a cultish grip on women who went into the MLM hoping to achieve independent wealth.
In Younique, if you must earn commission and maintain your present status, you must regularly buy the products.
This was the situation the representatives found themselves in.
So, it is one of the blacklisted MLM companies you should know.
You have to carefully do your research before joining any MLM company.
Although some of them are legit and drama-free, venturing into some is a lot of risk-taking.
6. Amway
Amway emerged as one of the first MLM companies mainly dealing with personal care and wellness products.
This MLM company started in 1959 in Michigan.
There have been accusations by many countries that Amway runs a pyramid scheme, and it has not been proven otherwise.
The company was not regarded as a pyramid scheme by the FTC in 1979; however, there have been many lawsuits filed against it in Canada, India, and the US to overrule that decision.
In 2010, Amway was accused of fraud, racketeering, and running an unauthorized pyramid scheme with a California class action lawsuit, and they were to settle $56 million.
After the settlement, it was alleged that Amway changed how it runs.
7. Royal Q
According to claims, Royal Q has made over $117 million in two years of its existence, and it has existed for four years.
Although claims are that the company has existed for four years, the review on the company’s website says otherwise.
The review shows it was incorporated in 2021; therefore, it has less than four years of existence.
Royal Q users described the company as a pyramid scheme where members are meant/persuaded into bringing new members to benefit from the system.
8. Nu Skin
On the list of blacklisted MLM companies is Nu Skin.
This company has about 1.2 million independent distributors in about 54 markets.
What the company sells are personal care products and dietary supplements.
Nu Skin company was investigated by the FTC and a few states for allegedly misleading marketing practices and running a pyramid scheme.
The company agreed on settlements with the FTC and the states.
Nu Skin also operated in China, under speculation, though.
It was called a suspected illegal pyramid scheme by the People’s Daily newspaper in 2014.
The company consented to pay a settlement of $47 million in a lawsuit filed by China in 2016.
It also agreed to pay the SEC over $765,000 to settle a probe into allegations the company bribed a top Chinese official.
9. Forsage
Forsage is yet another blacklisted company to watch out for.
The company has existed for over two years, as it only existed in 2020.
The US Securities and Exchange Commission (SEC) accused Forsage of defrauding investors.
They claim the website promoted a matrix cycler program offering substantial returns at little or no risk.
Investors make money by convincing other people to join the pyramid scheme.
Forsage founders, among several promoters whom the SEC filed charges against in connection with the scheme.
So, if you want to join an MLM business, watch out for this company.
Do proper research to see if it is worth your time and money.
What does it mean for a business to be blacklisted?
When a business gets blacklisted, a regulatory body, consumer protection organization, or other reliable sources have exposed it as participating in unethical or unlawful acts.
Being blacklisted typically means that the business has broken the law, deceived the public, or conducted business dishonestly or fraudulently.
Why are there so much MLM scam practices?
One reason individuals sign up for MLMs is because they believe it can make them wealthy automatically or within a short time.
Many of them loan money to get into it, which does not always work as planned.
So, they regard it as a scam.
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