What Are Some Pyramid Companies?

What Are Some Pyramid Companies?

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.

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.