Why do people fall for pyramid schemes? FTC v. Noland offers examples

v. Noland, 20-cv-00047-DWL (D. Ariz. May 11, 2023)

The decision in FTC v. Noland is notable for its discussion
of the testimony of a number of witnesses supporting the defendant who seem to
have been largely victims of the pyramid scheme found by the court, but
internalized defendant’s messages so strongly that they were unable to see
themselves that way. They often didn’t track expenses or even sales in an
organized way, so they overestimated their net earnings/didn’t notice their net
losses, and seem to have engaged in separate mental accounting of expenses like
attending seminars. They didn’t blame the company for losing money and some
donated large sums to legal defense for the company and its principals. It
gives some depressing insights into how people fall for pyramid schemes and may
stay true believers, thinking only that they themselves have failed to succeed.

from Blogger http://tushnet.blogspot.com/2023/05/why-do-people-fall-for-pyramid-schemes.html

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