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What are some pyramid companies?

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Quick Answer

Some examples of companies that have been accused of being pyramid schemes are Nu Skin Enterprises, Mary Kay and Herbalife. Pyramid schemes are illegal business enterprises with a hierarchical setup where new recruits are promised a high return for their investments but do not receive that return.

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Full Answer

Nu Skin Enterprises, which is a skin care and supplement company founded in 1984, has been investigated by the Federal Trade Commission in several states. Mary Kay, a cosmetics company started in 1963, has a net revenue of $7 billion, as of 2015. It has been called "The Pink Pyramid Scheme."

Herbalife, a skin care and supplement company founded in 1980, is being investigated for illegal pyramid activities by the FTC, Securities and Exchange Commission and the Department of Justice, as of 2015.

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