Eventually, however, every pyramid collapses, leaving consumers out hundreds even thousands of hard-earned dollars. That s why pyramids are illegal. Pyramid schemes typically require consumers to make an initial investment to participate, with the promise that each participant will receive a profit of thousands of dollars as more people join the pyramid. In Ohio, all pyramids are illegal regardless of whether or not they involve a product such as travel packages, coupon books, beauty or health products, or phone cards. In Ohio, the Anti-Pyramid Sales Act prohibits operating a pyramid sales plan.
Most states have similar laws.
Requiring a large initial investment to participate. Promises of large financial returns for little effort. Commissions based on recruiting new members. Participation in a pyramid includes proposing, planning, preparing, or operating a pyramid scheme. In fact, they re illegal and could be financially devastating.