Legal Question in Business Law in Idaho

Pyrimid scheme or not?

I have some friends who recently got involved with a company, (Quixtar) that is similar to Amway. They work to recruit people under them, and the more they recruit for their busniness, the more money they supposedly make. The difference is, they are considered by this company Individual Business Owners rather than individuals. The idea is the same though. They buy products monthly, get money back, get points for signing people up, get kick backs on what those people purchase each month, and so on down the line. so eventually, they are getting ''commisions'' on the money spent by others, and should eventually never have to work again....This sounded suspect to my husband and I and we want to know if this is legal or not. Also, would it be good to tell them we checked the legality of it (if it is indeed on the shady side) and sugest they do so as well. They have been assured by those in the upper ranks that this is all completly legal. Thank you for your time.


Asked on 5/16/02, 12:04 am

1 Answer from Attorneys
Gass Timothy Gass Law Office

Re: Pyrimid scheme or not?

I would have no idea without reading all the literature about the scheme, how it works, etc. However if it is a straight pyramid scheme then these have been found illegal in the past. You should contact the Better Business Bureau, the attorney general's office etc for free advise on this scheme you asked about. I'll charge you to review all the documents and the law. They might be able to give you a quick answer, however.

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Answered on 5/27/02, 4:28 pm


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