posted on April 5, 2002 06:38:50 AM new
Michigan Settles with KM.Net
January 18, 2002
Michigan's Attorney General, Jennifer Granholm, has announced a settlement with internet-mall scheme KM.Net. It should result in about $6 million in compensation for Michigan consumers.
On March 24, 2000, Michigan filed suit against KM.Net, claiming that it violated Michigan's anti-pyramid scheme laws. Now a settlement has been reached with KM.Net and its owner, Steven Giordana.
KM.NET, and its affiliated companies PowerCard International and ECB4U.COM, violated Michigan law by selling Internet "malls" through an on-line pyramid scheme. As many as 23,000 Michigan residents may have purchased the "malls."
Granholm also intervened on behalf of Michigan consumers in a class action suit against KM.Net in Alabama. A preliminary settlement was reached on October 1, 2001, and involves all consumers who bought an Internet mall between March 3 and March 22, 2000, and whose bank accounts were electronically debited on or after March 22, 2000.
For more specific information, visit the Michigan Attorney General's
(I wonder if AuctionDiner is headed in the same foots steps .)?
[ edited by gordoyloco on Apr 5, 2002 06:40 AM ]
posted on April 5, 2002 09:27:37 AM new
Isn't Amway a big pyramid scheme too? I remember the big pyramid craze of the late 1970's. I knew a guy that actually paid $25,000 cash to join a pyramid and of course he couldn't get any other people to join so he was out his $25,000. A fool and his money are soon parted.
posted on April 5, 2002 03:43:10 PM new
The Feds versus the MLM Gang:
The Other Side of the Story
It is a fact that a few large MLMs have survived against the best efforts of law enforcement officials to shut them down, spending millions of dollars to protect, lobby, and insulate themselves. But the same could be said for any organized crime. It is difficult to stop once it becomes so large.
And MLMs look so legitimate to the public, so decent. So many nice people are involved. Surely, it can't be illegal! The people lower down may even defend the very organization that is robbing them, hoping that they might get their chance to make "the big money" later.
But if it looks like a duck, walks like a duck, and quacks like a duck, it probably is a duck. Unless it is an MLM, and then it is NOT a pyramid.
The Feds generally see it differently... when the ML (multi-level) aspect begins to eclipse the M (marketing) of products or services.
People can make money in an MLM, undeniably. The moral issue is: Where is the money coming from? Selling product? Then why not sell the same product in the "real world"?
But everyone knows that the real incentive is the pyramid aspect, and the product just the excuse to make it legal, or at least the MLM promoter would like you to believe it is legal.
( MLM=Multi-Level-Marketing ) Proselytizing: Beneath Begging?
If money is needed that badly, why not simply ask friends and family for help rather than taking money from them under false pretenses--and also selling them a bill of goods? By "sponsoring" them, you have not only conned them and profited at their expense, you have made them feel like losers, since they are not able to make a success of the hopeless MLM concept.
Once seen, only the morally blind, or consciously criminal, could continue in such a "business."
But wait, perhaps you could recruit... your mother!
Moral Inventory
By way of review, the prospective MLM initiate has to face and resolve these ethical issues:
1:]Do I want to be involved in encouraging people to be more materialistic?
2:]Do I want to sell a product that perhaps couldn't be sold any other way?
3:]Do I want to be a part of an enterprise famous for slander, libel, and rumor?
4:]Do I want to be a part of a company that may employ criminals as marketing experts?
5:]Do I want to make money off my ability to convince people that an unworkable marketing system is viable?
6:]Do I want to be known among my friends and family as a person who tried to con people with a thinly veiled pyramid scheme?
If you can answer these questions "yes," training is available... But remember that God is watching, even if you never get "successful" enough for the Feds to notice you.
posted on April 5, 2002 05:12:49 PM new
I thought of Amway the entire time I read the post above. Everything fit. A pyramid or pyramid-type marketing setup should be avoided at all costs before it costs you your friends and the respect of your friends.
posted on April 6, 2002 12:26:51 AM new
Good Morning:bidsbids
WoW you have hit it right on the head, Only if we all thought like you, there would'nt no low life con-man.
I admire your post but I thought I may add how about saving your family and the respect of your family. Have a great weekend .^5
