Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

Remember what the MLM expert said about how many levels of a pyramid there can be until there just aren't enough people in the world anymore? (I think it was 12 but I could be wrong.) That's why it should be illegal - because they sell the idea that there's an endless amount of money to be made but that's not actually true if you over-saturate the market with consultants. Eventually there won't be anyone to sell it to anymore.

Supply and demand. In the beginning there were not a lot of consultants. And those leggings were hard to find! I remember someone telling me about them and then trying to buy some and being totally unable to figure it out. And then I searched on facebook and got into one of these groups and did a live party or whatever, and got swooped up in trying to get a good pattern. It was crazy and I remember thinking it was insane. I think I went to two of those, ordered some leggings, and then I was over it. My SIL hosted a party at her house in Fairfax around the same time for a bunch of different 'small business moms' some of whom had real crafts but there was a LLR person there and I got a shirt. Anyway, in the beginning everyone was talking about how soft the leggings were and they were impossible to find so when I had the opportunity I bought it up.

But fast forward a year and I had like 10 FB friends selling it, trying to get me to join their groups, everything was ugly. There was WAY too much supply, demand fell off a cliff. Especially for the ugly patterns because there was enough halfway decent stuff around that no one felt compelled (and I have to say the way they ran those parties you felt LITERALLY compelled to buy, like an auction or something) to buy the ugly stuff.

You're just the kind of person that they want to invite. I always say no to invites like that. I'm not compelled to buy anything.

Anonymous wrote:You know what the problem is with this documentary? They talk about all the SAHMs who were scammed and ruined, but what about the manufacturing side? How did the ramp up production like that? Who made those initial 20k maxi skirts for DeAnne? I imagine there is a whole different group of mistreated clothing manufacturers on the backend here.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am halfway through the series and so far it seems like they started off as a legitimate business but 1/ third or half way in they became extra greedy and their business morphed into a Ponzi scheme.

No, I don’t think that’s right. I think it was intended as an MLM the whole time.

I agree with this mostly. I think it was intended as an MLM the minute they saw this was taking off. I think when she first started, however, it was probably like how she bought the skirts wholesale and then resold them at a 2x profit. She was probably thinking it was the same type of thing. Soon enough, however, they realized the money wasn't in sales, but in getting new people to buy in and from very early on - then - it was an MLM. The owners are pigs and gross. You can find some of their texts, videos, etc. online. When asked a tough question, they looked at each other to see who would answer. She says in her deposition that she doesn't know her title in the company or what the return policy is. They are both liars, as is their nephew. He was likeable on the show but he scammed people, also.

Anonymous wrote:

Anonymous wrote:I am halfway through the series and so far it seems like they started off as a legitimate business but 1/ third or half way in they became extra greedy and their business morphed into a Ponzi scheme.

No, I don’t think that’s right. I think it was intended as an MLM the whole time.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

Remember what the MLM expert said about how many levels of a pyramid there can be until there just aren't enough people in the world anymore? (I think it was 12 but I could be wrong.) That's why it should be illegal - because they sell the idea that there's an endless amount of money to be made but that's not actually true if you over-saturate the market with consultants. Eventually there won't be anyone to sell it to anymore.

Supply and demand. In the beginning there were not a lot of consultants. And those leggings were hard to find! I remember someone telling me about them and then trying to buy some and being totally unable to figure it out. And then I searched on facebook and got into one of these groups and did a live party or whatever, and got swooped up in trying to get a good pattern. It was crazy and I remember thinking it was insane. I think I went to two of those, ordered some leggings, and then I was over it. My SIL hosted a party at her house in Fairfax around the same time for a bunch of different 'small business moms' some of whom had real crafts but there was a LLR person there and I got a shirt. Anyway, in the beginning everyone was talking about how soft the leggings were and they were impossible to find so when I had the opportunity I bought it up.

But fast forward a year and I had like 10 FB friends selling it, trying to get me to join their groups, everything was ugly. There was WAY too much supply, demand fell off a cliff. Especially for the ugly patterns because there was enough halfway decent stuff around that no one felt compelled (and I have to say the way they ran those parties you felt LITERALLY compelled to buy, like an auction or something) to buy the ugly stuff.

Anonymous wrote:

Anonymous wrote: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.

Remember what the MLM expert said about how many levels of a pyramid there can be until there just aren't enough people in the world anymore? (I think it was 12 but I could be wrong.) That's why it should be illegal - because they sell the idea that there's an endless amount of money to be made but that's not actually true if you over-saturate the market with consultants. Eventually there won't be anyone to sell it to anymore.

Anonymous wrote:You know what the problem is with this documentary? They talk about all the SAHMs who were scammed and ruined, but what about the manufacturing side? How did the ramp up production like that? Who made those initial 20k maxi skirts for DeAnne? I imagine there is a whole different group of mistreated clothing manufacturers on the backend here.

Anonymous wrote: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.

Anonymous wrote:

Anonymous wrote:I am halfway through the series and so far it seems like they started off as a legitimate business but 1/ third or half way in they became extra greedy and their business morphed into a Ponzi scheme.

No, I don’t think that’s right. I think it was intended as an MLM the whole time.

Anonymous wrote:I am halfway through the series and so far it seems like they started off as a legitimate business but 1/ third or half way in they became extra greedy and their business morphed into a Ponzi scheme.