Statement of Joseph N. Mariano, President, Direct Selling Association, in Reaction to the Federal Trade Commission’s BurnLounge Announcement

June 17, 2015

“We applaud the Federal Trade Commission for compensating the victims of BurnLounge earlier this week. One year ago, BurnLouge was found to be a pyramid scheme by a United States appellate court, because participants in the company’s so-called business opportunity were compensated for recruiting additional participants, as opposed to selling products, a lawful practice, which includes purchasing products for personal use.

“Pyramid schemes like BurnLounge have no place in our marketplace, are expressly banned by Direct Selling Association’s Code of Ethics and should be prosecuted to the fullest extent of the law.”

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