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"Chain letter" sales, Chain sales

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Danf5096

Junior Member
What is the name of your state?
California :confused:

I've seen a number of quick, easy money offers which really just want you to buy their product and resell it and resell it. What "it" is is really just information about how to pass on this information or information product. You get people excited about buying this product and making lots of money quickly and easily, so they buy it from you, then sell that same information, which only tells you how to advertise it and send it on. Are these types of products legal to sell?
 
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racer72

Senior Member
These are known as pyramid or multi level marketing schemes. They are a scam and illegal in most states.
 

Jypsy

Member
Danf5096- Congratulations on doing exactly the right thing. So many just jump right in without taking the time to educate themselves, then later after they were scammed and helped to perpetuate the scam, they cry scam. What you did was what we wish more people would do, their "due diligence." Good job. :)
 

dallas702

Senior Member
Pyramid schemes are illegal if they don't involve the sale of an actual product.....such as "chain letters". Multilevel marketing is just another name (Harvard Business School circa 1980's) for the old downline Amway game, but it is certainly not illegal per se.
 

Danf5096

Junior Member
Chain letter

Thank you all for your help! Just to clarify...These places claim it's legal to sell their product since it IS an information product of how to continue to send this "product" on to make a lot of money. But that still isn't legal, right?!
 

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