What Is A Pyramid Scheme?: Distinguishing The Term From Legitimate Multi-level Marketing Practices – Analysis

By Harold Furchtgott-Roth and Kirk R. Arner*

“Pyramid scheme” sounds sinister. The term is used so routinely and casually that it is easy to imagine it has long been codified as illegal in the United States. It turns out, however, that the concept is a rather recent American legal construct that has yet to be codified in...