Why Federal Government Must Have Tools to Fight Pyramid Schemes

Jon Bruning, former Nebraska Attorney General and president of the National Association of Attorneys General: In 2010, I helped Nebraska’s legislature pass a model law to protect consumers from pyramid schemes. Similar laws have now been adopted in 21 states. As Nebraska’s top law enforcement officer, I recognized the harm being caused to consumers from these schemes. Nebraska’s bill passed unanimously with bipartisan support. The law continues to protect consumers, helps keep pyramid scheme operators out of the state, and gives prosecutors the tools to investigate and prosecute schemes. Bottom line: the Federal Trade Commission (FTC) has enforcement authority but no federal law defining a pyramid scheme. Congress should address this ambiguity and close this loophole, giving the FTC the tools it needs to do its job. That’s why it’s so important to pass bipartisan legislation that defines and bans pyramid schemes. H.R. 3409 clearly defines a pyramid scheme and fights those schemes. The federal government has the opportunity to follow the states’ leadership and adopt a clear standard for pyramid schemes, defining and banning them. It is high time for the federal government to do what the states have already been doing — move to protect our citizens from scams. Read more in the Washington Times.

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.