takeyourlevel.com and matrix systems

Discussion in 'Legal Issues' started by blomstervand, Jun 10, 2009.

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  1. #1
    Hi. takeyourlevel.com is a matrix system, and i think matrix systems are illegal. So i did a whois and expected some chinese or offshore ip, but its hosted in england? How can it be legal? Are matrix systems legal??
     
    blomstervand, Jun 10, 2009 IP
  2. Nonny

    Nonny Notable Member

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    #2
    In the US, multilevel marketing and matrix marketing are legal under some conditions

    http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv12.shtm
    And there are plenty of promoters here in the US who set up the illegal pyramid versions under their own names and addresses - sometimes because they are ignorant of the law, and sometimes because they think they can get away with it. And some of them end up paying huge fines and/or going to jail.

    It wouldn't surprise me if the situation was similar in the UK.
     
    Nonny, Jun 10, 2009 IP
  3. blomstervand

    blomstervand Well-Known Member

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    #3
    ok, but if i sell something. Lets say a screensaver, for 1$, and make a pyramid scheme based on that, it would be legal??
     
    blomstervand, Jun 10, 2009 IP
  4. Nonny

    Nonny Notable Member

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    #4
    If you are making money by selling a product, rather than by recruiting new members, then it's not a pyramid scheme and you are fine. If the 1$ screensaver is being sold as a front to hide the actual pyramid, then it's illegal.
     
    Nonny, Jun 10, 2009 IP
  5. blomstervand

    blomstervand Well-Known Member

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    #5
    Ok. What if i make them do offers (cpa), and i get like 2$ each free offer they complete. I pay them 1$. Those they recruit, get 1$ also for every offer, and the one that recruited them gets 0.50$ and i get 0.50. Would that be legal?

    Also, how can someone know if theres a pyramid scheme behind? Cant i just say you are paying for a product, but as a bonus.....


    And how can takeyourlevel be legal? It have been hosted for months or years now in UK. They dont even offer products.
     
    blomstervand, Jun 10, 2009 IP
  6. Nonny

    Nonny Notable Member

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    #6
    The question to ask yourself is where the profit is coming from. Does the money from the CPA offers cover all the money you are doling out? Also, if people stopped signing up to your program would you still be able to make money? One of the hallmarks of a pyramid scheme is that the business will fall apart when it runs out of recruits.

    But IANAL and if you want to do it legally you should speak to an attorney who can advise you how to set up your business within the laws where you live and where your business is located.

    You should also note that PayPal doesn't like multi-level-type businesses, so you may have to find a payment processor who will work with you:

    https://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside
     
    Nonny, Jun 11, 2009 IP