New York Times published an article about the rise of home parties and trunk shows by women involved in direct selling in bigger cities like New York and the challenges they face.
Nine women were gathered in the immaculate Midtown East apartment of Mallorie Corcoran, 29. Tall, svelte and long-maned, the guests and their hostess clustered around a table in the living room, picking at fruit platters and sandwiches but generously pouring themselves wine and seltzer.
“Thank you so much for coming,” Ms. Corcoran said. “We have our new holiday collection, so there are lots of goodies for you to try on.” The women laughed. “And there are lots of different price points — a lot of our stud earrings are $30 and under. So everyone just have fun. Drink wine. Eat.”
And, if they
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DSA President Joe Mariano Explains Pyramid Schemes
by Ramya Chandrasekaran • • 0 Comments
In a letter to the New York Times, in response to a column by Joe Nocera titled The Pyramid Scheme Problem, US Direct Selling Association president Joseph Mariano has written this explanation:
To understand what constitutes a pyramid scheme, Joe Nocera (column, Sept. 15) points to a recent United States Court of Appeals decision that correctly concludes that a scheme exists when recruitment of sales people is at the heart of a company’s business. But the column doesn’t mention that there are additional standards offering useful guidance.
In 2004, the Council of State Governments suggested that every state adopt its model legislation that defines and prosecutes against schemes. The model, or similar legislation, was enacted by 18 states and is notable for its specificity.
We have helped prosecute pyramid schemes over many years and work
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DSA President Joseph Mariano’s New York Times Letter To The Editor
by Tina Williams • • 0 Comments
To the Editor:
Re “Riddle of the Pyramids,” by Joe Nocera (column, Jan. 10):
There is no riddle. Federal law and statutes in a majority of the states clearly define a pyramid as an operation that pays salespeople primarily for recruiting additional members into a network instead of selling products. The Federal Trade Commission further warns that pyramids may require members to buy large amounts of inventory, meaning you couldn’t consume it yourself, or unwanted items.
“Multilevel marketing” is not synonymous with pyramid scheme. The former is an accepted, lawful method of marketing consumer goods and services. The latter is an illegal business operation that should be prosecuted to the fullest extent of the law.
Hundreds of direct selling firms in the United States (sometimes referred to as multilevel marketers) that are members of the Direct Selling Association are progressive companies with sound business practices that provide opportunities to millions around the globe. These companies, including Herbalife, have committed themselves to the highest level of marketplace ethics and a rigorous self-regulatory code.
We should consider the consequences to the individuals who sell and consume their products — and the communities their parent companies serve — before placing scarlet letters upon their legitimate businesses.
JOSEPH N. MARIANO
President
Direct