Yesterday (7/20) the L.A. Times published an editorial about Herbalife's settlement with the FTC.

A few relevant excerpts:

"…Herbalife has been dogged by accusations that its distributors are actually victims of a scam designed to enrich the company and a few people at the top of the distribution chain…

"Known as multi-level marketing companies, firms like Herbalife… recruit individuals to act as distributors by promising them a cut of the proceeds… profits lie not in selling small quantities to many customers, but in persuading friends and acquaintances to buy large supplies that they, in turn, distribute within their social circles.

"And therein lies the problem, because the same approach is the hallmark of a pyramid scheme…"

[And now, the fun part]

"The settlement with the FTC sets at least two key standards for Herbalife, and by extension every other [MLM] that wants to avoid a lawsuit by the feds. The first is that the incentives offered to distributors have to be tied to sales of the product to bona fide consumers… distributors can't be rewarded for funneling products onto other middlemen; companies must have a stake in the success of their products at the retail level.

"The second is that the materials Herbalife uses to attract distributors can't promise a better life than the company can actually deliver. The FTC's complaint cites promotional videos… that show 'images of expensive houses, luxury automobiles and exotic vacations,' while offering testimonials from distributors who claimed to be making six- and seven figure incomes… a legitimate business should be able to entice people with its actual results."

They should apply those standards to missionary work.

Good one, old dog!

Jesus of Orem Wrote:
-------------------------------------------------------
> "The second is that the materials Herbalife uses
> to attract distributors can't promise a better
> life than the company can actually deliver.

My slight revision:

> "The second is that the materials A CHURCH uses
> to attract MEMBERS can't promise a better
> life than the CHURCH can actually deliver.

(such as the family always comes first, etc.)

It is no wonder that MLMs are primarily a Utah phenomena. Their business model is based on the LDS church's model.

It's also why fraud and scams flourish here. Utah has some of the loosest business laws in the country. And, they usually look the other way on the laws that do exist. And you're right- it's all based on slick gimmicks with no substance & unfulfilled promises. Just like the church.

That's because people will still pay tithing even after they lose everything, and people who took everything will pay even more. It's a win-win for the corporation that owns Utah.

Utah is absolutely full of MLM pyramid schemes:

http://www.npros.com/MLM_by_state_list.asp?MLM=Utah

Provo-based MLM/Network Marketing Company NuSkin has made it's founders FILTHY RICH by taking hundreds of millions from low-level distributors. These founders are adored by LDS, Inc.

Christ would be shocked.

MLM = mormons losing money

That's good!

How can I forget the magic washing machine balls one of my siblings tried to sell for an MLM. For seventy bucks you got a 2 inch hollow plastic ball filled with blue liquid. They claimed the liquid was electrically charged water that would expel ions into the washer to separate dirt from clothes. Water with impurities will carry a current, but you can't permanently charge it. It's not a battery. I told my family and they mocked my skepticism. They blinked at me like birds.

The magic balls were tested and found to contain tap water and blue dye. But I was wrong. I was always wrong for not going along.

My stupid ex bought one of those. Paid $75 for it, from someone "in the ward." She tried to explain how it worked, and I was amazed that she - a college graduate - actually believed it. So, we ended up washing a few loads of laundry without any detergent. Since I did most of the laundry, I soon went back to using detergent. Perhaps I didn't have enough 'faith' to make it work....

Donbagly said "The magic balls were tested and found to contain tap water and blue dye. But I was wrong. I was always wrong for not going along."

I feel like this is how TBMs will ALSO react when the LDS church admits to unpleasant facts about its history (rock in hat) or changes a major policy (blacks and priesthood) - that even though Exmos already knew those facts or were pushing for that policy change years prior, they are STILL the bad guys now because they said it or did it BEFORE it was sanctioned by the LDS Church leadership. They are still wrong because they didn't go along.