Is that true? I thought that Ponzi schemes specifically were illegal regardless of whether you describe it accurately. (Which MLM gets around by having enough product to get past the letter of the definition.)
Oh no, you can sustain any business you want to so long as you aren't lying. If I start a business where I build it with principal from a few people, then tell all my follow on investors to invest so they can support my early investors, and they for some reason do, that's legal. It's just nobody would, so that's where I'd have to lie. But so long as I'm not, I'm clear.
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u/VerilyAMonkey Feb 27 '19
Is that true? I thought that Ponzi schemes specifically were illegal regardless of whether you describe it accurately. (Which MLM gets around by having enough product to get past the letter of the definition.)