Experts warn retirees: MLM schemes can lead to financial loss and isolation
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These days, retirees are warned about financial drains like phishing emails or fake IRS calls, but there’s another scheme that can be harder to recognize because it often doesn’t look like a scam at all: multi-level marketing companies, or MLMs.
According to the Federal Trade Commission (FTC), “An MLM is a type of company that distributes products or services through a network of participants who are typically not employees of the company and do not receive a salary or wage.” Instead of a traditional paycheck, participants earn money by selling products—and by recruiting others into the system, building what are known as “downlines.” The FTC also notes that most MLM participants earn little or no profit, with earnings heavily concentrated among those at the top of the structure.
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Content retrieved from: https://tinyurl.com/mu7hmvyx.
