June 13, 2020

Multi-level marketing

It’s a weird grey area where some of aspects are kind of illegal (like pyramid schemes) but not really.

A lot of people argue it should be illegal, and it certainly seems to cause. lot of harm and prey on vulnerable people. But by design, not all bad things are illegal we don’t outlaw everything that’s bad for us, because we expect adults to be able to make their own decisions. There isn’t a clear line, and I’m not sure which side multi-level marketing and pyramid schemes should fall on.

Law is only one lever of change some things may be better addressed by educating people so that there is no demand for damaging schemes. But we also know that cognitive-biases can make it really hard for people to make good decisions and that people often act against their own interests, so at what point is it best to intervene?

Kind of reminds me of drop-shipping where people make their money by primarily selling courses that supposedly teach others how to make money in drop-shipping…

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Updated Jun, 14 2020


#Scams