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2 Kincaid galleries in ABQ close

 
 
cicerone imposter
 
  1  
Reply Mon 22 Sep, 2003 06:40 pm
All I've gotta say at this point is people need to learn to take responsibility for their own foolishness. You know that old saying, "if it sounds too good to be true, it usually is."
0 Replies
 
BumbleBeeBoogie
 
  1  
Reply Mon 22 Sep, 2003 06:55 pm
What does this remind you of?
What does the Kincaid operation remind you of? A pyramid scheme?

---BumbleBeeBoogie

How to Avoid Being a Victim of Pyramid Schemes

Some multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited. Most of the product sales are made to these distributors - not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate.

Joining a pyramid is risky because the vast majority of participants lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their money except the expensive products or marketing materials they are pressured to buy.

If you're thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan. What's the company's track record? What products does it sell? Does it sell products to the public-at-large? Does it have the evidence to back up the claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? How much is the investment to join the plan? Is there a minimum monthly sales commitment to earn a commission? Will you be required to recruit new distributors to earn your commission?

Be skeptical if a distributor tells you that for the price of a "start-up kit" of inventory and sales literature - and sometimes a commitment to sell a specific amount of the product or service each month - you'll be on the road to riches. Often consumers spend a lot of money to "build their business" by participating in training programs, buying sales leads or purchasing the products themselves. Too often, these purchases are all they ever see for their investments.

If you decide to become a distributor, you are legally responsible for the claims you make about the company, its product and the business opportunities it offers. That applies even if you're repeating claims you read in a company brochure or advertising flyer. The Federal Trade Commission advises you to verify the research behind any claims about a product's performance before repeating those claims to a potential customer.

In addition, if you solicit new distributors, you are responsible for the claims you make about a distributor's earnings potential. Be sure to represent the opportunity honestly and avoid making unrealistic promises. If those promises fall through, remember that you could be held liable.

Do not be fooled if the scheme includes some form of "reports" or lists or other pieces of "information" that you are supposedly buying from those above you, and selling to those below you. In nearly every case, these intangible products have no value imputed to them, other than that which can allegedly be gained by copying and reselling them. The purpose of these reports is not to provide valuable information, but to provide a pretext by which one participant in a pyramid scheme collects money from other participants.

Damages

The amount lost in these types of schemes is dependent upon the amount invested. Those in the lower ranks of a pyramid scheme pay less than those in the upper levels of the pyramid who stand to lose more.

Pyramid schemes produce no goods of any significance, and they provide no service. They create no wealth. All they do is move existing wealth. Every dollar that one person gains through such a scheme is a dollar that someone else has lost.

Legalities, Laws & Repercussions

Pyramid schemes are prohibited by the laws of the United States of America, by the laws of each of the fifty individual states, and by the laws of most other nations. These schemes are variously defined under these laws as either a form of gambling, or as outright fraud.

Participants of pyramid schemes are viewed as people involved in illegal activity rather than as victims. Most perpetrators accused of this type of scheme are typically charged with the felony crime of commercial gambling. Perpetrators may also be brought up on misdemeanor charges for the solicitation of a pyramid club, punishable by time in jail and/or a fine.

Settlements in pyramid scam cases often times prohibit defendants from ever engaging in any other pyramid or marketing scheme in which a person derives income primarily from recruiting others into the program. The defendant's assets are typically frozen by the court and placed under the authority of a receiver who will implement a redress plan. These settlements also prohibit the release of consumers' names that were recruited to join the pyramid scheme.

Security & Prevention

Be aware of posters that claim pyramid schemes are completely legal, claiming they are mailing lists or recipe services. These posters may even cite Title 18, sections 1302, 1341, 1342, and 1343 of the "Postal Lottery Laws." These sections are part of the U.S. Code. I'm sure that none of these people have actually read them, because they do not authorize pyramid schemes. In fact, these are the very laws that make pyramid schemes illegal.

All responsible Internet sites have developed policies against posting pyramid schemes. Users are typically notified of these policies when given an account. Some of the people affected and/or offended when a pyramid scheme has been posted will send copies to your site. Your system administrator may let you off with a warning, but you could have your Internet access suspended or revoked. If posting from school or work, users could be disciplined for using the institution's computers to post pyramid schemes.

In addition, the FTC has published a free brochure, "Profits in Pyramid Schemes? Don't Bank On It," that warns that consumers should:

Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.

Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.

Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.

Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.

Beware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan.

Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, accountant or lawyer.

Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering - especially when the claims about the product or your potential earnings seem too good to be true.

Remember that no matter how good a product and how solid a multilevel marketing plan may be, you'll need to invest sweat equity as well as dollars for your investment to pay off.

The Better Business Bureau gratefully acknowledges the work of the faculty and students at St. John Fisher College who developed this information for use by the BBB.
0 Replies
 
ehBeth
 
  1  
Reply Mon 22 Sep, 2003 07:13 pm
hmmmm, are people who buy Kinkaid encouraged to have others buy Kinkaid? It may be different in the U.S., but here that is a requirement for something to be considered a pyramid sales scheme.
0 Replies
 
farmerman
 
  1  
Reply Mon 22 Sep, 2003 07:34 pm
He, whose name shall never be mentioned by me, has reached the bottom of the art world. I know this because they are selling those black velvet repros of some of his "art" in flea markets, Right next to the Black velvet Elvis and Dale Earnhardt velvets.

Portal Star, we must read deeper into Frost . He was a rather dark poet and certainly well above a comparison to he whose name shall not be mentioned by me.

I thanks you for your patience .
0 Replies
 
Portal Star
 
  1  
Reply Tue 23 Sep, 2003 01:28 am
*sigh* I wasn't condeming the skills of Frost or Rockwell by comparing them to "the unnamable," only mentioning that they work with American idealism, like Kinkaid.

I'm up at 2:30 am writing an art history paper. *sigh*`
0 Replies
 
 

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