Mail Tribune Business - How you can avoid pyramid schemes

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How you can avoid pyramid schemes The Federal Trade Commission offers these tips for consumers to guard themselves against illegal pyramid schemes: Avoid any plan that offers commissions for recruiting additional distributors. Beware of plans that ask new distributors to spend money on high-priced inventory. These plans can collapse quickly and also may be illegal pyramids in disguise. Be cautious of plans that claim you'll make money through continued growth of your "downline" -- commissions on sales made by new distributors you recruit -- rather than sales you make yourself. Beware of "shills" -- decoy references that the promoter pays to describe fictional success in earning money through the plan. Do your homework. Check with your local Better Business Bureau and state attorney general about any plan you're considering, especially if the claims about your potential earnings or the product sound too good to be true. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA