Cagey Consumer

Arizona AG says Emperor has no clothes

Seven months after the Illinois Attorney General reached a settlement allowing Nutrition for Life to continue operating its multi-level marketing plan, the Arizona Attorney General issued a press release to the effect that a multi-level marketing plan run by Tele-Sales International (TSI) was actually a pyramid, even though TSI's plan had substantially the same provisions as the NFLI plan.

In so doing, the Arizona AG's office apparently rejected the notion that adherence to provisions such as those contained in these plans effectively ensured that they did not constitute a pyramid. This is consistent with Cagey Consumer's analysis of the agreement that NFLI reached with the Illinois Attorney General's office, and Cagey Consumer applauds the Arizona Attorney General for speaking an obvious truth.

Officials of TSI vehemently objected to the press release issued by the Arizona AG, and issued their own press release. Among the representations included in the TSI press release are sales statistics indicating that the average TSI distributor has made sales to 2 customers, and the average TSI distributor sells 1.25 minutes of prepaid calling time per day. Given the typical retail cost for prepaid calling cards of 25 cents per minute, this suggests that the average TSI distributor is doing under $10 of volume per month.

As yet, Cagey Consumer has been unable to obtain the full text of the AG's press release. Anyone who has obtained such a copy is requested to contact Cagey Consumer.

Related links:
Tele-Sales home page
Cassie Johnson's TSI page
Kent & Chi Ann Baum's TSI page
Larry Nunn's TSI page
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