Q:

How is ACN a marketing scam?

A:

Quick Answer

Expensive registration fees are paid in large part to the top of ACN's corporate seller structure while the sellers and recruiters themselves experience high rates of turnover and are alleged to see annual losses rather than profits, notes consumer organization Pyramid Scheme Alert (PSA). It costs sellers money to buy the right to sell ACN products, and these registration fees form the bulk of the company's profits an enrich its owners.

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Full Answer

ACN is alleged to be a pyramid scheme. It behaves like a pyramid scheme in that all of those at its base must work hard in exchange for meager profits, and their work greatly increases the wealth of those above them.

The company also engages in other suspicious behavior such as its refusal to publish statistics about its rate of internal turnover or statistics relating to what its sellers make in a year. This is seen as proof that the company wishes to conceal that its sellers operate at a loss and are being gulled by charismatic cheats, states PSA.

ACN has faced numerous charges of operating a pyramid scheme in the United States and Canada. It has paid heavy fines but in 2015 it continued to operate along the same bases that had made it a frequent target for public outrage and litigation.

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