Anti-Pyramid Scheme Legislation Is Necessary to Protect Consumers from Fraud

Mario Lopez, president of the Hispanic Leadership Fund: Direct selling is one avenue that many have used to get a leg up in America and start their own business. These hardworking Americans are looking for opportunity, and direct selling provides them with the empowerment and independence they are looking for. Unfortunately, as with many other industries, there are scammers who abuse the trust that consumers have in the direct selling industry, and often successfully lure unsuspecting people into pyramid schemes. Recently, state governments have tightened up their laws around direct selling. It is time for the federal government to follow suit — it is inexcusable that there is no federal law defining a pyramid scheme. Fortunately, the Anti-Pyramid Promotional Scheme Act of 2017 (H.R. 3409) has been introduced in Congress to help put a stop to pyramid schemes. This legislation would take virtually the same language used in over 20 states, and the European Union, to prosecute pyramid schemes, and elevate it to the federal level. It does not pre-empt any state consumer protection laws, or encroach on the Federal Trade Commission’s current authority. We need laws with real teeth that are both pro-consumer and pro-small business. Read more in The Hill.

Urge your Member of Congress to co-sponsor H.R. 3409 today — it’s easy through the Direct Selling Association Advocacy Center! http://www.dsa.org/advocacy/direct-selling-advocacy-center

Direct Selling Association

Direct Selling Association

Direct Selling Association (DSA) is the national trade association for companies that manufacture and distribute goods and services sold directly to consumers.