I'm very aware of the case against Amway. It was a landmark case that has allowed the Multi-Level Marketing industry to exist in the capacity it is today. They have had other battles and many of the other companies in the industry are constantly falling a foul of the rules. It is a very big grey area so I always refer to MLM companies as quasi legal pyramid schemes. They just try not to get the label of being an illegal pyramid scheme but in a couple of recent examples with Herbalife and Vemma they have been hit with very heavy fines for scamming their distributors. These companies use deception to create impossible systems that cause 99% of their distributors to be unprofitable.

Herbalife had to pay $200 Million back to former distributors for scamming them. https://www.ftc.gov/news-events/press-releases/2017/01/ftc-sends-checks-nearly-350000-victims-herbalifes-multi-level

Vemma who is based here in Arizona and was a sponsor of the Phoenix Suns was fined $238 Million by the FTC for scamming. http://www.azcentral.com/story/money/business/consumers/2016/12/20/vemma-tempe-based-energy-drink-company-settles-feds/95667174/

Oftentimes the MLM companies not getting in trouble are following the same principles that these other companies are. They are making so much money they are able to get away and keep going and doing the same thing essentially. MLM companies are founded by scammers and ran by scammers.

My main thing about something being a scam is if their is deception involved.

I do agree that Social Security is in a way a Ponzi but the interesting thing about it is that when the distributions started it wasn't paying old investors with new investor money. It suddenly started with the younger generations paying the older generation even though the older generation didn't contribute into it. That was an odd situation compared to the way Ponzi's are set up but now in theory a person is collecting a percentage of their contributions into perpetuity until they die. But now there aren't enough contributors and people are living way longer than initially expected for the system to remain solveant. So yeah it sure looks unsustainable in its current form.

I think what is more of a Ponzi that is allowed is venture capital funding on some of these tech companies. It is like get in early and pass the hot potato to the next guy and try not to be the bag holder on these unprofitable apps. But I guess they are upfront on what they are trying to do and what they are working on.

I agree that Karma will be a bitch. It will be interesting for sure! LOL