LegalQuestions9
Junior Member
What is the name of your state (only U.S. law)? Texas
I recently got an email about a new program that's out and it seems like a pyramid scheme because there's no end product for consumers to buy.
Basically, you pay $67/month to be a member and earn $50/month for each person you get to signup. There are no products bought or anything like that, you're only paying so that you have the ability to get other people to signup so that you can earn more money.
I know that this seems highly suspicious just by itself, but is it actually illegal? The only reason I thought that it may not be is because it isn't multi-level. Basically, I don't earn any money as a result of the people signing up under me making sales. Since it's only one level (basically a one-tier affiliate program with no end product), is it legal for them to be running this operation?
Based off my research, it looks extremely sketchy to consumers but looks legal in terms of the law. But that's of course why there are forums like this where the pros can be asked
I recently got an email about a new program that's out and it seems like a pyramid scheme because there's no end product for consumers to buy.
Basically, you pay $67/month to be a member and earn $50/month for each person you get to signup. There are no products bought or anything like that, you're only paying so that you have the ability to get other people to signup so that you can earn more money.
I know that this seems highly suspicious just by itself, but is it actually illegal? The only reason I thought that it may not be is because it isn't multi-level. Basically, I don't earn any money as a result of the people signing up under me making sales. Since it's only one level (basically a one-tier affiliate program with no end product), is it legal for them to be running this operation?
Based off my research, it looks extremely sketchy to consumers but looks legal in terms of the law. But that's of course why there are forums like this where the pros can be asked