Pyramid selling is considered a criminal act if participants pay money for the right to receive compensation for recruiting new participants.

Question

Quizplus · Accepted Answer

Pyramid selling schemes, where compensation is primarily based on recruiting new participants rather than on the sale of goods or services, are considered fraudulent and illegal in many jurisdictions because they are unsustainable and often result in financial loss for most participants.

Pyramid Selling Is Considered a Criminal Act If Participants Pay