Reply to LuLaRich - Amazon docu series about LuLaRoe

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[quote=Anonymous][quote=Anonymous]I don’t understand why this is illegal. I mean of course it’s a scam but I don’t see where they lied to anyone except the refund policy for which they were rightfully sued. I feel bad for the women who signed up but I also don’t feel like they were victims of a crime. Especially the woman who ended up bankrupt - sounds like she profited but just spent it all?

I’m super liberal fwiw and I recoil at the ahole couple running it talking about “personal responsibility” but I also don’t feel like this should be illegal. As long as they’re transparent about the pyramid, which it sounds like they were, I don’t see how there can be a law against it. Seems on par with churches, gambling, and weight loss plans to me. [/quote]

Where were they ever transparent. They aren't no one would participate if they were.

They are never transparent. What you saw in the documentary was a mistake. The  son who mentioned it being a pyramid and how they had to change not to be a pyramid made a big mistake and his parents spent a lot of time trying to say he had no idea what he was saying. None of them admit they are a pyramid or explain to the dupes they are brining in that it is. Most of the people who buy in do not understand how it really works. The folks at the top know the vast majority of people in the pyramid will not make money and will likely lose money on product they will never sell.

The only way they make money in any of these mlms is by bringing in more dupes to sell the product beneath you.  The people at the top make most of their money off of the amount of money the sellers have invested to start up. They make much less money off of sales of the product.

The dupes have to invest lots of money before they even start to sell the product. They never tell the new folks coming in that they probably are going to lose money and, at best, they might break even. The seller had to invest lots up front to get the product. Often the mlm company charges them a ridiculous amount for a cheap product. They also have to keep buying more product from the main office or you no longer considered active. The seller will be punished for not buying more product. They end up with huge amounts of inventory.

Do you think that those people who walk up to people in parking lots and tell them they found a large amount of money and don't know what to do with it and they convince the dupe to put down cash as a deposit and then walk away with the dupe's money are committing a crime? It isn't any differnent.

In a pyramid scheme, you make money not by selling a product but by bringing more people in to participate in the scam. That's what is illegal. Only the top few people make any money. Most people who get involved after the originators set it up don't know what they are getting in to. Pyramid schemes cause large numbers of people to lose significant amounts of money.[/quote]

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