The California Attorney’s General office raised the red flags on YTB, aka Your Travel Biz, recently with a 25 million dollar law suit. Now mlmwatchdog reports that a 100 million dollar class action law suit has been filed by a St. Louis legal firm and that the Illinois AG is working with the California AG.

MLM Watchdog Story

The red flags were being rasised on YTB long ago. There is no reason anyone should be caught off guard. Check out this link. Reality Check

Critical thinking network marketers that I know had no problem seeing the red flags right away years ago.

Possibly even YTB realized their fate prior to the California AG’s law suit, as they notified the public of plans to change from network marketing to a franchise system. Major red flag announcement.

Franchise Info

What should be of concern to the network marketing  community is the bad light that is put on us when these situations arise. The public and even many network marketers do not understand that there is no such thing as an illegal network marketing pay plan. If a pay plan is illegal, then it is not network marketing. It is only an illegal pay plan disguised as a network marketing pay plan.

From one angle, we are happy to see the government take action. But on the other hand, people associate them with us. Even worse, there are many more still in business.

Can people make money in these illegal plans? Yes, and some people will make huge amounts of money. But many will lose, and the longer one is allowed to exist, the more people will lose and the worse they make the network marketing industry look. What if the government just let them be? They typically do for a while. It takes time and money to investigate and prepare for a law suit.

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