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Q: Telecommunications Companies ( Answered,   2 Comments )
Subject: Telecommunications Companies
Category: Business and Money
Asked by: gloriaeauclaire-ga
List Price: $2.00
Posted: 17 Oct 2005 10:28 PDT
Expires: 16 Nov 2005 09:28 PST
Question ID: 581318
Is the company ACN Telecommuinications really a legit company or is it
a Pyramid scam?  Please send some proof.
Subject: Re: Telecommunications Companies
Answered By: wengland-ga on 18 Oct 2005 10:13 PDT

It depends.  In the US, a judge in Delaware asked for permission to
participate, and the Ethics Advisory Committee granted limited

ACN uses the same marketing program as other long-time network
marketing businesses like Tupperware and Amway, according to the
Hoovers' Fact Sheet:,-inc./--ID__128499--/free-co-factsheet.xhtml

However, in Austrailia, the courts have ruled that it is an illegal
pyramid, and shut it down.

Also, it was charged in Canada with being an illegal pyrimid program:

They made "[...] exaggerated income representations without disclosing
the actual income of typical participants on the plan as required by
the Act. ACN Canada was also alleged to be operating as illegal scheme
of pyramid selling by offering recruitment bonuses."

So, to answer your question, they are a "legit company" in some
places, using a legal marketing program.  However, some of their
practices border on illegal, and have gotten them into trouble around
the world.

If you require further clarification, please ask before rating this answer.

Search Strategy:

ACN Telecommunications

ACN Court

ACN Canada 
Subject: Re: Telecommunications Companies
From: alb333-ga on 25 Dec 2005 12:45 PST
Regarding the legitimacy in Australia and Canada...each country has
different legislation and regulations for what makes a company and its
operations legal. Franchising in America, when it first hit the
business world, was thought to be illegitimate and many tried to shut
down franchising operations. Today, franchising is a common business
practice. The same is true for network marketing, it is so new (in
business terms) that many countries do not have regulations written or
have not updated any legislation regarding such. In America, a true
"pyramid scheme" operates in a way that there are no products or
services offered and when a new member pays to enter, that money is
paid out to other members in the system. ACN does not operate in this
way, there are services provided for customers, and there is a
balanced compensation plan in place in which no money is paid for
merely recruiting others. I recommend reading "Retire Young, Retire
Rich" or "Cashflow Quadrant" by Robert T. Kiyosaki for more
information regarding network marketing and its practices.
Subject: Re: Telecommunications Companies
From: iknowyouwanna-ga on 12 Sep 2006 10:23 PDT
I would agree with the poster above.  ACN is not a "Pyramid Scheme"
according to FCC standards.  However, if you look at the compensation
plan, are people making more money off of recruiting or more money
from product residual?  How much are you making off billing in levels
1-5?  1/4%  that's .0025 of 1.00!  If you've got $100,000 in billing,
do you know how much residual that is? A whopping $250.  The required
amount to become a Regional Vice President(RVP) is $75,000 in billing,
doesn't look like that RVP is making much from residual billing.  So
where is the big money coming from?  Guess.

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