FTC vs. Burnlounge Final Order

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Uploaded by on Jul 14, 2011

Burnlounge was held to be an illegal pyramid scheme by the U.S. District Court in California.

There's an incredible amount of information to learn from this case. The judge, after sitting on this case for over two years, illustrated a number of factors he used while analyzing the Burnlounge model. In yet another case, the court held that the participants inside the program (distributors) cannot be counted as "customers" for purposes of pyramid scheme analysis. It's imperative for companies to have solid customer numbers from people outside the program.

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  • Way to be Kevin! LOVE IT!

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