Top 20 Biggest Pyramid Scheme Companies

In the world of finance and investment, pyramid schemes often pose as lucrative opportunities, promising high returns with minimal effort. However, behind these enticing offers lies a web of deception that exploits unsuspecting investors. In this article, we will delve into the top 20 biggest pyramid scheme companies, shedding light on their operations, impacts, and why they are considered some of the largest scams in history.

1. Amway
Founded in 1959, Amway is one of the oldest and most prominent companies often accused of operating a pyramid scheme. While Amway markets itself as a multi-level marketing (MLM) company, critics argue that its business model heavily relies on recruitment rather than product sales. The company has faced numerous legal battles and regulatory scrutiny over its practices.

2. Herbalife
Herbalife, established in 1980, is another giant in the MLM industry. The company sells dietary supplements and weight loss products. It has been criticized for its focus on recruiting new members rather than selling products, leading to accusations of operating a pyramid scheme. Herbalife settled with the Federal Trade Commission (FTC) in 2016, agreeing to pay $200 million and restructure its business model.

3. Mary Kay
Mary Kay, a well-known cosmetics company founded in 1963, operates on a multi-level marketing model. Critics argue that the company’s emphasis on recruitment and the pressure on consultants to purchase inventory create a pyramid-like structure. Although Mary Kay has been successful, it has faced criticism and legal challenges regarding its business practices.

4. Tupperware
Tupperware, famous for its food storage products, has been accused of running a pyramid scheme due to its MLM model. Founded in 1946, Tupperware’s business relies on consultants to host parties and sell products. The company has faced scrutiny over the financial pressure placed on its consultants and the emphasis on recruitment.

5. Nu Skin
Nu Skin, a company specializing in personal care products, has been criticized for its pyramid-like structure. Established in 1984, Nu Skin has faced legal challenges over its business practices, including allegations of operating a pyramid scheme. The company settled with the FTC in 2016, agreeing to make changes to its compensation plan.

6. Advocare
Advocare, a health and wellness company founded in 1993, has been accused of running a pyramid scheme. The company’s business model emphasizes recruitment and sales of health supplements. In 2019, Advocare settled with the FTC for $150 million and agreed to change its business practices.

7. Forever Living Products
Forever Living Products, founded in 1978, is known for its aloe vera-based health and beauty products. The company operates on an MLM model, which has led to accusations of pyramid scheme practices. Critics argue that the focus on recruitment and inventory purchases creates a pyramid-like structure.

8. Primerica
Primerica, a financial services company founded in 1977, operates with a multi-level marketing approach. The company’s focus on recruiting new representatives and the pressure on agents to purchase leads and insurance products have led to accusations of operating a pyramid scheme.

9. WorldVentures
WorldVentures, a travel and lifestyle company founded in 2005, has faced allegations of being a pyramid scheme. The company’s business model relies on recruitment and selling vacation packages. It has been involved in legal battles and regulatory scrutiny over its practices.

10. ACN Inc.
ACN Inc., founded in 1993, provides telecommunications services and operates with a multi-level marketing model. The company has faced criticism for its focus on recruitment and the pressure on representatives to purchase services, leading to accusations of operating a pyramid scheme.

11. Zija International
Zija International, a health and wellness company established in 2005, markets its products through a multi-level marketing model. The emphasis on recruitment and the purchase of inventory have led to criticisms and accusations of pyramid scheme practices.

12. Isagenix
Isagenix, founded in 2002, offers health and wellness products through an MLM model. The company has faced scrutiny over its focus on recruitment and the financial burden placed on its representatives, leading to accusations of operating a pyramid scheme.

13. Juice Plus+
Juice Plus+, a company selling dietary supplements, has been criticized for its pyramid-like structure. Founded in 1993, the company’s reliance on recruitment and inventory purchases has led to accusations of operating a pyramid scheme.

14. The Free Life
The Free Life, a health and wellness company, has been accused of running a pyramid scheme. The company’s MLM model and focus on recruitment have led to legal challenges and regulatory scrutiny over its business practices.

15. OneCoin
OneCoin, a cryptocurrency investment scheme founded in 2014, is one of the most notorious pyramid schemes in recent history. Promoting itself as a digital currency, OneCoin defrauded investors out of billions of dollars before being shut down by authorities.

16. BitPetite
BitPetite, a cryptocurrency investment platform, has faced allegations of being a pyramid scheme. The company’s model, which emphasizes recruitment and promises high returns on investment, has led to regulatory scrutiny and legal challenges.

17. PlusToken
PlusToken, another cryptocurrency scheme, operated as a pyramid scheme disguised as an investment platform. The company promised high returns on cryptocurrency investments, leading to significant financial losses for investors before being shut down.

18. Control Your Cash
Control Your Cash, a financial education company, has been criticized for operating a pyramid scheme. The company’s focus on recruitment and selling financial products has led to accusations of being a pyramid scheme.

19. Doterra
Doterra, known for its essential oils, operates with a multi-level marketing model. Founded in 2008, the company’s focus on recruitment and inventory purchases has led to criticisms and legal challenges over its business practices.

20. Young Living
Young Living, another essential oils company, has faced accusations of operating a pyramid scheme. Established in 1993, the company’s MLM model and emphasis on recruitment have led to scrutiny and legal challenges.

Conclusion

Pyramid schemes continue to lure individuals with promises of easy money and high returns. While some companies operate legally under multi-level marketing models, others cross the line into pyramid scheme territory. It’s crucial for investors to conduct thorough research and be wary of companies that prioritize recruitment over genuine product sales.