eli5 How do multi-million dollar pyramid schemes stay around for so long?

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The company’s that everyone knows are MLM trash (HerbaLife, JuicePlus, ect). When I was looking for a job I naively joined a seminar discussing CutCo Knives. Come to find out these dud muffin companies have been around since my mom was growing up, and are somehow still operational? Wouldn’t the BBB or whatever business bureau operates in the US (FTC?) have these scams shut down by now? I understand that new ones are popping up all the time but im referring to the ones that have been around forever now.

In: Economics

41 Answers

Anonymous 0 Comments

Because they make enough money that they can bribe lawmakers to turn a blind eye to their clearly illegal (or at the very least grossly unethical) shenanigans. So long as they don’t piss off the really, really big money pricks and they keep paying those bribes, then various regulatory bodies find themselves…peculiarly slothful in their response to any wrongdoing.

Assuming said regulatory bodies aren’t getting preemptively neutered by lawmakers so they couldn’t make trouble for their money-friends even if they wanted to.

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