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Re:The MLM Epidemic in 13 Maps by encorekt on Thursday November 14, 2019 @03:20PM (#21539001)
Absolutely -- it's that promise of financial freedom and products that "basically sell themselves" except you're stuck with the inventory because 10 people are working on the same friends to get them to buy Younique mascara.
Re:The MLM Epidemic in 13 Maps by throwawaysea on Thursday November 14, 2019 @03:41PM (#21539178)
Actually, MLMs are required to repurchase unsold inventory: https://www.mlmlaw.com/library/cases/mlm/ftc/amway.htm
Re:The MLM Epidemic in 13 Maps by Osiris on Thursday November 14, 2019 @05:30PM (#21540206)
My wife did Mary Kay and they had a clause regarding buy back: They would pay 90% of what you paid to buy it and you'd be blacklisted - you could never by a MK consultant again.

So even if an MLM has that type of program they probably make sure people know it'd be bad for them to exercise it.

Re:The MLM Epidemic in 13 Maps by thaumasiotes on Friday November 15, 2019 @12:27AM (#21542446)
> they probably make sure people know it'd be bad for them to exercise it.

The example you cite seems to undermine this claim. If you're doing terribly selling Mary Kay products, you get 90% of your money back and... you can't sell Mary Kay products anymore. Which you couldn't do in the first place; why would you care about being blacklisted?

Re:The MLM Epidemic in 13 Maps by nkrisc on Friday November 15, 2019 @08:51AM (#21544727)
If people thought about it that rationally, they wouldn't have gotten involved with MLM schemes in the first place.
Re:The MLM Epidemic in 13 Maps by wp381640 on Thursday November 14, 2019 @05:52PM (#21540389)
Most have penalties for repurchasing such as restocking and delivery fees that mean they still make good

That is before going into the psychological pressure applied to distributors to not "fail" by asking for a restock, and the incentive schemes that mean many distributors continue stocking up on unsold goods to maintain commission and reward levels

Re:The MLM Epidemic in 13 Maps by RandomBacon on Thursday November 14, 2019 @03:46PM (#21539217)
That's a pretty long document. What section?

I'd love to be able to tell my friend whose wife still has a bunch of LuLuRo leggings.

Re:The MLM Epidemic in 13 Maps by jandrese on Thursday November 14, 2019 @04:04PM (#21539398)
The doc seems specific to Amway. Perhaps this clause:

> 72. Amway, the Direct Distributor or the sponsoring distributor will buy back any unused marketable products from a distributor whose inventory is not moving or who wishes to leave the business. (RX 331, p. 17­B to 18­B; CX 847; CX 1076) The buy­back rule has been in existence since Amway started. (CX 1041­ J) Amway enforces the buy­back rule. (CX 847; Brown, Tr. 5012­13; Bortnem, Tr. 686, 690; Soukup, Tr. 913)

In any case I would not be surprised in the least if your upstream told you to pound sand if you tried to return unsold product, regardless of legal precedent. You have to decide if it is worth your time and money to sue them.