multi-level marketing (MLM) harassment - The Skeptic's Dictionary

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class="container"> <div class="header"> <div class="logo"> <img src="_images/logo_01.png" alt="The Skeptic's Dictionary" width="270" height="60" border="0" />           <br /> by <a href="http://skepdic.com/refuge/bio.html">Robert Todd Carroll</a> * est. 1994 </div> <div class="slogan"> <img src="_images/slogan_01.gif" alt="A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions" width="362" height="30" /> </div> </div> <div class="menu"> <ul> <li></li><li><a href="http://skepdic.com/">Home</a></li> <li><a href="http://skepdic.com/news/">Newsletter</a></li> <li><a href="http://skepdic.com/feedback.html">Feedback</a></li> <li><a href="http://skepdic.com/faq.html">FAQ & Interviews</a></li> <li><a href="http://skepdic.com/tour.html">Site Map</a></li> </ul> </div> <div class="middle"> <div class="left"> <h2>Topical Indexes</h2> <ul class="nav_1"> <li><a href="http://skepdic.com/tialtmed.html">Alternatives to Medicine</a></li> <li> <a 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href="http://skepdic.com/contents.html#E">e</a></li> <li><a href="http://skepdic.com/contents.html#F">f</a></li> <li><a href="http://skepdic.com/contents.html#G">g</a></li> <li><a href="http://skepdic.com/contents.html#H">h</a></li> <li><a href="http://skepdic.com/contents.html#I">i</a></li> <li><a href="http://skepdic.com/contents.html#J">j</a></li> <li><a href="http://skepdic.com/contents.html#K">k</a></li> <li><a href="http://skepdic.com/contents.html#L">l</a></li> <li><a href="http://skepdic.com/contents.html#M">m</a></li> <li><a href="http://skepdic.com/contents.html#N">n</a></li> <li><a href="http://skepdic.com/contents.html#O">o</a></li> <li><a href="http://skepdic.com/contents.html#P">p</a></li> <li><a href="http://skepdic.com/contents.html#Q">q</a></li> <li><a href="http://skepdic.com/contents.html#R">r</a></li> <li><a href="http://skepdic.com/contents.html#S">s</a></li> <li><a href="http://skepdic.com/contents.html#T">t</a></li> <li><a href="http://skepdic.com/contents.html#U">u</a></li> <li><a href="http://skepdic.com/contents.html#V">v</a></li> <li><a href="http://skepdic.com/contents.html#W">w</a></li> <li><a href="http://skepdic.com/contents.html#X">x</a></li> <li><a href="http://skepdic.com/contents.html#Y">y</a></li> <li><a href="http://skepdic.com/contents.html#Z">z</a></li> </ul> <webContent><h1 style="text-align: left">multi-level marketing (MLM) harassment</h1> <p style="text-align: left"><font face="Arial" size="3">Multi-level marketing harassment is a form of economic harassment in the work place whereby a superior uses his or her power to recruit a subordinate into a multi-level marketing scheme. Like sexual harassment, MLM harassment can be subtle or blatant. The most blatant form would be using the direct threat of not hiring or promoting, or even firing someone for not agreeing to become an "independent" MLM agent. Of course, talented managers know many subtle ways to suggest to their subordinates that their success with the company depends upon their saying 'yes' to the boss. </font> </p> <p style="text-align: left"><font face="Arial" size="3">One of the most successful MLM companies is <a HREF="amway.html">Amway</a>. The basic formula is simple. First, there is the "Company", which has a product or array of products. Second, there are the independent distributors who (a) sell the Company product and (b) recruit new distributors who do the same, ad infinitum if possible. The reason distributors don't just sell the Company product is that they receive "bonuses" for sales made by their recruits. Theoretically, the richest independent distributor would have dozens, hundreds, thousands, even millions of subordinate distributors who would be doing the actual selling, while the Big One did little or no selling of the Company product at all. That is, the emphasis of MLM schemes is not selling the Company <em>product</em> but selling the <em>Company</em> itself. </font> </p> <p style="text-align: left"><font face="Arial" size="3">It should be obvious, then, that the Big Cheese of a non-MLM company could stand to reap substantial economic rewards from having a little army of "independent distributors" (read "coerced employees who will buy the MLM Company products and recruit others to do so). MLM infestation is inevitable in non-MLM bureaucracies. The main bait may be the promise of extra cash to the subordinate, but superiors (managers, purchasers, personnel officers, supervisors, etc.) are really interested in their own extra cash. Superiors who have bought into the Unimagined Wealth Dream of most MLM schemes will not have many scruples recruiting their subordinates. It is possible that the superiors may even deceive themselves into thinking that they are offering bona fide economic opportunities to their subordinates. It is also quite likely that many employees will not feel coerced but will buy into the Unimagined Wealth Dream themselves. (Just as some bosses may delude themselves into thinking that they are really offering an opportunity to an employee's sexual happiness when they make sexual advances to a subordinate. And, just as some people who are seduced by their bosses, end up marrying the boss.) These facts complicate matters, and may sometimes make it difficult to prove harassment occurred. After all, if you are agreeable, how can anyone say you were harassed? </font> </p> <p style="text-align: left"><font face="Arial" size="3">But it is not just large, bureaucratic businesses which may see MLM harassment. Schools, for example, may also be prone to MLM harassment. In fact, anywhere there is a person who has power over others, the opportunity for MLM harassment emerges. Fear of not being hired or re-hired and fear of not being promoted or of being fired can be powerful incentives to get on board the MLM bandwagon. </font> </p> <p style="text-align: left"><font face="Arial" size="3">As far as I know, there are no laws prohibiting superiors of non-MLM organizations from recruiting inferiors into MLM schemes. Nor are there laws for discriminating against someone solely because they did not want to join an MLM scheme. Thus, even if you could prove beyond a reasonable doubt that the only reason you were fired from your last job as a structural engineer was because you refused to become an Amway agent when asked to do so by your superior, you may have no recourse in a court of law. </font> </p> <p style="text-align: left"><font face="Arial" size="3">Because of the potential for abuse of power, one would think that companies and organizations would as a standard rule prohibit MLM recruitment. But how many of us have worked at a place which has a policy against MLM harassment? Very few, I think. The exception, of course, would be if you work for one of the Armed Services. Our military organizations know quite well how easy it is for superior officers to take advantage of those who are their juniors. And they have rules which forbid such behavior. For example, you will find the following rule in the <i>Code of Federal Regulations</i> (32 CFR Sec. 721.6) </font> </p> <blockquote> <p><font face="Arial" size="3">Standards of conduct governing naval personnel </font> </p> <p><font face="Arial" size="3">(c) Using naval position. Naval personnel are prohibited from using their official positions to improperly induce, coerce, or in any other manner improperly influence any person to provide any benefit, financial or otherwise, to themselves or others....</font></p> <p><font face="Arial" size="3">(e) Commercial solicitations by naval personnel. To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, all naval personnel are prohibited from making commercial solicitations or sales to DOD [Department of Defense] personnel who are junior in pay grade, or position, at any time or place. </font> </p> <p><font face="Arial" size="3">Commercial sales, whether or not solicited, are prohibited between officer and enlisted military personnel.... <br> <br> (1) This prohibition includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and other commodities or goods.</font></p> </blockquote> <p style="text-align: left"><font face="Arial" size="3">In fact, naval personnel are forbidden to engage in outside employment, with or without compensation, if that employment is </font> </p> <blockquote> <p><font face="Arial" size="3">inconsistent with the requirements of this instruction, including the requirement to avoid actions and situations which reasonably can be expected to create the appearance of a conflict of interest.</font></p> </blockquote> <p style="text-align: left"><font face="Arial" size="3">How many private corporations include such protection against abuse of power in their employees' manual? </font> </p> <p style="text-align: left"><font face="Arial" size="3">It should be emphasized that MLM harassment goes way beyond the kind of intimidation one feels when the boss brings in her kid's school candy bars and asks you buy them for the Save the World Fund. The one-time only or the once-in-a-while extortion is small change--however inconvenient--compared to having to become an MLM agent. The difference is like the difference between having to go to Church on Christmas and having to join a cult. </font> </p> <p style="text-align: left"><font face="Arial" size="3"><strong>See also</strong> <strong style="font-weight: 400"><a href="amway.html">Amway</a> </strong>and<strong style="font-weight: 400"> <a href="mlm.html">multi-level marketing</a>.</strong></font></p> <p style="text-align: left"><font Size="3" face="Arial"><b>postscript: Thanks to Diogenes, whoever you are</b>. </font> </p> <hr width="25%" align="left" noshade> <p style="text-align: left"><font face="Arial" size="3"><b><a href="comments/mlmcom.html">reader comments</a></b> </font> </p> <p style="text-align: left"><font face="Arial" size="3"><b>further reading</b> </font> <p style="text-align: left"><b><font face="Arial" size="3">book</font></b><p style="text-align: left"><font face="Arial" size="3">Fitzpatrick, Robert L. and Joyce Reynolds. <a href="http://www.falseprofits.com/"><i>False Profits - Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes</i> </a>(Charlotte, N.C.: Herald Press, 1997). See my <a href="refuge/fitzpat.html">review </a>of this book.</font><p style="text-align: left"> <b><font face="Arial" size="3">websites</font></b><p style="text-align: left"><font face="Arial" size="3"><a HREF="http://www.vandruff.com/mlm.html">What's Wrong With Multi-Level Marketing? </a> </font> <p style="text-align: left"><font face="Arial" size="3"> <a href="http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv12.shtm">FTC - Multi-level Marketing Plans</a></font><h2 style="text-align: left"> <font size="3" face="Arial"> <a href="http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt008.shtm"> FTC- The Bottom Line About Multilevel Marketing Plans</a></font></h2> <p style="text-align: left"><font face="Arial" size="3"> <a href="http://www.ftc.gov/speeches/other/dvimf16.shtm">FTC - On Pyramid Schemes </a></font> <p style="text-align: left"><font face="Arial" size="3"><a href="http://www.lawpublish.com/mlm.html">FTC's Online Booklet: "Net Based Business Opportunities: Are Some Flop-portunities?"</a></font><p style="text-align: left"><font face="Arial" size="3"> <a href="http://www.mlmsurvivor.com/">MLM Survivors Home Page</a> </font> <p style="text-align: left"><font face="Arial" size="3"><a HREF="http://www.quackwatch.com/01QuackeryRelatedTopics/mlm.html">The Mirage of Multilevel Marketing</a> by Stephen Barrett, M.D.</font><p style="text-align: left"><font face="Arial" size="3"> <a href="http://www.fraud.org/internet/intinfo.htm">Internet Fraud Watch</a></font><p style="text-align: left"><font face="Arial" size="3"><a href="http://www.freedomofmind.com/resourcecenter/groups/a/amway/">Steve Hassan on Amway</a></font> </webContent>Last updated 27-Oct-2015 <p> </div> </div> <div class="right"> <div class="right_it"> <div class="search"> <form method="get" action="http://www.google.com/custom" target="_top"> <input type="hidden" name="domains" value="skepdic.com" /> <input type="text" name="q" maxlength="255" value="" size="20" /> <input type="submit" name="sa" value="Search" /> <br /> <div class="search_2"> <input type="radio" name="sitesearch" value="" /> Web     <input type="radio" name="sitesearch" value="skepdic.com" checked="checked" /> Skepdic.com <br /> <img src="_images/logo_google.gif" alt="Google" width="48" height="19" /> </div> <input type="hidden" name="client" value="pub-3542920166946725" /> <input type="hidden" name="forid" value="1" /> <input type="hidden" name="ie" value="ISO-8859-1" /> <input type="hidden" name="oe" value="ISO-8859-1" /> <input type="hidden" name="cof" value="GALT:#008000;GL:1;DIV:#336699;VLC:663399;AH:center;BGC:FFFFFF;LBGC:336699;ALC:0000FF;LC:0000FF;T:000000;GFNT:0000FF;GIMP:0000FF;FORID:1;" /> <input type="hidden" name="hl" value="en" /> </form> </div> <div class="center"> <p align="right"><a href="http://skepdic.com/authorpage.html"><strong>Books by R. 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multi-level marketing (MLM) harassment - The Skeptic's Dictionary - Skepdic.com