For years, they have deceived consumers with the promise of a quick and easy profit for little or no effort.
Pyramids focus on recruiting new members, instead of on selling real products.
To work, a true pyramid would have to grow exponentially, eventually outstripping the entire population. Mathematical experts note that the vast majority of the people who join a pyramid never can recoup more than they paid in. In spite of a promoter's hype about his profitable downline or matrix , he can never lure enough consumers to join the scheme. When pyramids fail to recruit enough members, the flow of money stops, and the pyramid topples like a house of cards. Because collapse is inevitable, these schemes are illegal under many state and federal laws.