THE JURISPRUDENTIAL AND LEGAL SURVEY OF PYRAMIDAL COMPANIES

Network marketing phenomenon in which mendacious mediators are eliminated, basically is a useful matter. But the companies so-called pyramidal schemes misuse this title. In this companies there isn’t any production, consumable goods and useful work and they just constitute the pyramids in which the money belongs to persons in lower level go into the pocket of company and few people who are in the apex of pyramid. These companies are divided into three groups: investment companies, product-based companies and companies that offer no product.Every country which has a law about these schemes, recognize them a crime. Rational proof and multiple jurisprudential proof implicate that these activities are illegitimate.