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WHAT TO DO WHEN YOUR MLM - Network Maketing COMPANY HAS DONE YOU WRONG.
By Rod Cook
To bypass this page and file complaints directly
This is a general outline for all situations that may arise. A little custom tailoring may be needed for your specific case but overall this methodology will give you a running start!
Start log events. A spiral notebook is good. A day timer, such as the Powerline Tracker, is better. Go back into the past, and start it as far back as you can, on events concerning your complaint(s). Anybody you talk to or write to: post the time and date in the log. This can be your most valuable tool when filing complaints or in court. In some states taping a phone call without the other persons permission is legal. You can go to Radio shack and for $19.95 get a high quality phone tap. Some folks have made tapes in states where it is not legal, strictly for their own personal use, never to be revealed, to use as memory joggers. Check with a local lawyer before you do any taping to be sure of the legalities. A terrible thing is for you to be "nailed to the wall" for illegal activities while you are being screwed by your company!
Start a file of any or all correspondence of documents you have from, and to, the MLM - Network Marketing company. A good filing system (these will later be appendixes for complaints or legal action) to follow is:
File A - Correspondence with the MLM - Network Marketing company in time sequence, i.e. their letter threatening to terminate you or refusing to refund your money, and your reply back to them. Make copies of your logs from #1 above and put them in time sequence with other MLM - Network Company correspondence.
File B - All MLM - Network Marketing distributor agreements you have, company policies and procedure's etc.
File C - Copies of all commission checks or stubs. If these are missing, deposit slips or copies from your bank. Copies of your 1099's should be in this file.
File D - Copies of your MLM downline genealogies in time sequence.
File E - Any miscellaneous material that doesn't fit in above. Make a list of people that might support you (other MLM distributors, corporate employees, witnesses to certain events, etc.) do not have them write letters. Often the company will scare them off before you can get a legal deposition if you are going to court. Just make a list of name, addresses, and phone numbers and keep adding to it every time you think of a new person who can help your position!
Write a simple outline of what has occurred after you have number #2 above done. Keep emotion out of it. Of course the company wants you to feel like doodoo. Don't get depressed, or down in the dumps. Do the outline, try to be as objective as possible. This also helps spark your memory and you can come back and keep adding to the outline.
Then work with the MLM - Network Marketing company. Log every word and activity that occurs when you communicate with them! You can talk to them, but always follow up with a written letter that you send by certified mail. See the section on example complaint letters. You can be mean or nice. Generally the best strategy is to be nice until it is evident that you are being "stonewalled." Don't let too much time drag by. A common trick with the "old" Equinox was to stall returns until the distributor gave up. They made up a 100 excuses for not returning money for merchandise until many people just flat gave up!
See the form to file an MLM Watchdog Complaint. Sometimes the threat of bad publicity helps your side. Sometimes we have complaints from other MLM distributors that you aren't aware of. The higher the complaints pile, the better. We also give tips on the best route to go. If it is a termination case and appears totally unfair, and point out to them the error of their ways and ask if they want to be on a national TV show specializing in investigative journalism. :>)
6. Don't get into a corporate mentality with your company. You are not an employee. They enjoy great freedom by not having to pay FICA taxes, Unemployment taxes, Workers comp, and a bunch of other reasons why they don't want you to be an employee! Many people suck up to the company like it was going to get them promoted. Sorry, not so! They will make you feel like you are a "member of the family" until "push comes to shove." Guess who gets shoved!
The Attack! Nothing has helped. You pleaded, asked, and begged, and the company, through excuses or silence, has told you to kiss off!
Termination:
Contact an MLM - Network Marketing pro distributor lawyer. Several are listed in this publication we have others that prefer not to be listed. Sadly, in general, for them to handle a case for one person (see the note on class action suits and costs) the amount of commissions owed need to be over $50,000 in the near or immediate future. If you want to front all the money for the case they will do it for less. For a great book on unfair terminations The DRA may be able to help see the Distributor Rights Association www.mlm-dra.org
Go to the regulators and consumer protection agencies (if the lawyer in above agrees) if you can't afford the lawyer this may be your only route. Remember you can allege fraud has occurred, but make sure you use the words, "I allege." Check with your local attorney when drafting this letter or pay one of the MLM distributor lawyers to review it!
1. File a complaint letter with your local Better Business Bureau (BBB) and District Attorney.
2. File a complaint letter with the BBB in the area where the company is located.
3. File a complaint letter with your State Attorney General asking that a request for action be forwarded to the Attorney General in their state.
4. Send a copy of the letter in #3 to the Attorney General in their state.
5. File a complaint letter with your regional Federal Trade Commission office.
6. Send a copy of the letter in #4 above to the Washington, D.C. FTC.
7. Send copies to other consumer protection groups listed in this publication.
8. If you have others in the same boat as you are all proceed 1-7 as quickly as you can.
9. Return of money for unsold products and distributor fees:
9a. Send a complaint letter to your BBB and a copy to their BBB at the same time.
a1. Send a complaint to your Attorney General asking for action with their state AG.
a2. Send copies of "a" and "b" to your regional Federal Trade Commission (FTC)
10. Collapsed company bankrupt: same activities as #9 except don't expect much!
11. Collapsed company where owners may have taken off with money (not proven).
a. File a complaint letter with the Federal Trade Commission national
office.
a1. Send copies of "a" and "b" to their BBB.
b. File a complaint letter with Your Attorney General and a copy to their
AG.
12. Just remember the squeaky wheel gets the grease. Many dishonorable NetWork Marketing companies depend on shamed silence... The more heat you put on, the better the chance of their responding. Remember, stay logical: don't insult or curse. A natural tactic of some scumbag companies is to sue the squeaky wheel!
Let us know, we are members of the National Lawsuit Abuse Association and love to point out such companies!
Have a good time!
See: Rod Cook Complaint Form
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