Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes

  title={Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes},
  author={Patrick van der Nat and William W. Keep},
  journal={Journal of Public Policy \& Marketing},
  pages={139 - 151}
A specific form of direct selling, multilevel marketing (MLM), experienced significant international growth during the 1990s, facilitated in part by the development of the Internet. A corresponding increase in the investigation and prosecution of illegal pyramid schemes occurred during the same period. These parallel activities led to increased uncertainty among marketing managers who used or wished to use the MLM approach. The authors examine similarities between the multilevel approach to… Expand
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