jeb@kitc.UUCP (Jim Beckman) (09/20/85)
<>
Amway isn't the only "legal" pyramid scheme running in America. Don't
forget the biggest pyramid of all:
Social Security
It's only legal because the government does it.rjn@hpfcla.UUCP (10/01/85)
re: SSS as "pyramid" scheme... > Amway isn't the only "legal" pyramid scheme running in America. Don't > forget the biggest pyramid of all: > Social Security > It's only legal because the government does it. SSS is a "Ponzi" rather than a pyramid. In a Ponzi scheme, prior investors are paid out of the income from new investors; up until the operator has enough "float" to retire to Brazil. The government won't act in this manner, of course, because unlike a Ponzi operator, the government can enroll new investors by FORCE and pay old ones by printing money (i.e. inflating the money supply). The recent lactic culture scam is also representative of a Ponzi. Pyramid schemes rely on a growing hierarchy of re-distributors. Quiz for the day: Is a chain letter a pyramid scheme? Film at eleven. Regards, Hewlett-Packard Bob Niland 3404 East Harmony Road hplabs!hpfcla!rjn Fort Collins CO 80525
marks@yogi.DEC (02/24/86)
Recently, I attended a function sponsored by a local university, to which the public had been invited. While I was there, the professor who was running the function mentioned a "get rich quick" scheme he and his wife were involved in. On a table in the middle of one of the rooms where we were assembled, the professor had organized stacks of what I would call propaganda (most likely Xeroxed on the university's copying machines) about this scheme (this was totally separate from the function we were attending, which really rather surprised if not shocked me). In his words, he said, "Suspend your disbelief and talk to me about how you can make all kinds of money..." The corporation that seems to be the "granddaddy" of the scheme I was presented with is M.L.P. Corporation of Memphis, Tennessee. The scheme is called "Trend Card," and the premise is that you (the peon) invest $49.50 in a "Trend Card," which allows you to buy food and household products at supposedly "discount" prices. Included with the information/propaganda is a representative list of the discounts you can get, and frankly, scanning them quickly, they don't seem too much (if at all) less expensive than the prices at my local Stop & Shop. The hook is that you are supposed to push the sale of these trend cards to absolutely everyone in the world. (The propaganda suggests starting with everyone you know, e.g., the police and fire chief of your town, the mayor, people on your old job, people on your new job, neighbors, your lawyer, your doctor(s), your gardener, your milkman, the person who sold "your wife her fur coat," and basically everyone else on up to God.) You get a "commission" for selling the cards and you get a cut of the money the cardholders spend on the food and household items. You are also provided with an order form to order either an A, B, or C mailing list (each one progessively cheaper with progressively less useful -- older -- names). Included in the propaganda is also an "application" (really a contract) in which you obligate yourself to the M.L.P. Corporation in certain ways (you must sell a minimum of one Trend Card per month to remain eligible to sponsor new agents; you absolve MLP Corp. of any employer/employee obligations to you; you may not advertise using MLP Corp.'s name; the company can alter its "marketing plan" at any time; you are not remunerated for recruiting new sales persons; etc.). Most of the articles in the agreement protect M.L.P. or absolve it from liability. I guess my question is this: does anyone have any personal experience with this corporation? With this particular scheme? Haven't there been recent laws enacted to counteract this type of pyramid scheme or to prohibit it? I am in Massachusetts, but I am not entirely aware of the laws governing this type of thing. Does anyone know of what the appropriate state agency is to find out about it or to let someone know it is going on? I suppose the Attorney General's office might keep files on these things. Is that the appropriate place to call? Thanks in advance.
dave@cylixd.UUCP (Dave Kirby) (02/26/86)
In article <1324@decwrl.DEC.COM> marks@yogi.DEC writes: > >The corporation that seems to be the "granddaddy" of the scheme I was >presented with is M.L.P. Corporation of Memphis, Tennessee. The >scheme is called "Trend Card," and the premise is that you (the peon) >invest $49.50 in a "Trend Card," which allows you to buy food and >household products at supposedly "discount" prices... I work here in Memphis, so I couldn't resist this posting. I called the local BBB, and they are *very* familiar with this outfit. Here's what they told me. M.L.P. Corporation was formed in June, 1984 by a fellow called Mr. George. It indeed markets the Trend card, which not only gives you discounts, but also claims to help you clear up problems with your credit cards, prepare your will (!), and give you travel discounts. Mr. George was the president of the now-defunct V.I.P. Corporation, formed in October, 1981, which marketed a similar card called the "Clout" card. This company went bankrupt, and Mr. George is trying his hand again with this new corporation. The BBB warns to be very cautious in dealing with this company. Then the guy at the BBB said something really strange. He said there was a lot more information he could give me if I could tell him the food store chain that was behind M.L.P. He can't give me any information about the parent company unless I ask for the company by name, and he would not give me the name. But he implied there is a lot more about the company to be said; and he seemed to be afraid of a libel suit if he told me, unless I asked for the parent company by name. All in all, it sounds like a fun outfit. See if you can get the name of that parent company, and I can get you more dirt on them. ----------------------------------------------------------------- Dave Kirby ( ...!ihnp4!akgua!cylixd!dave)