Did you know that your browser is out of date?
For the best experience we recommend upgrading to the latest version of these supported browsers:
I wish to continue viewing on my unsupported browser
For the best experience we recommend upgrading to the latest version of these supported browsers:
I wish to continue viewing on my unsupported browser
04 January 2018
Dr. Chetan Sanghvi
Dr. Chetan Sanghvi, Managing Director in NERA’s Antitrust and Competition Practice, recently published the article “We Need A Law To Recognize And Combat Pyramid Schemes” in Law360. In his expert analysis, Dr. Sanghvi explains the need for well-crafted protective legislation and assesses the proposed Anti-Pyramid Promotional Scheme Act of 2017, introduced by US Congressional Representatives Marsha Blackburn (R-TN) and Marc Veasey (D-TX).
Dr. Sanghvi explains how this type of fraud causes large-scale economic damage when consumers, wary of being caught in a scheme, shy away from legitimate direct sellers. The Blackburn-Veasey bill has the potential to stem this damage by isolating, and identifying as fraudulent, the activities that differentiate pyramid schemes from above-board direct selling companies. Language similar to the Blackburn-Veasey bill was passed as part of the appropriations package by the US House of Representatives in September 2017, and efforts are under way to introduce a similar bill in the US Senate.
To read the full text of “We Need A Law To Recognize And Combat Pyramid Schemes,” click here.