At SMP Hawaii, we are committed to protecting our kūpuna and their families from fraud, including misleading multilevel marketing (MLM) scams and illegal pyramid schemes.
While some MLM programs are legitimate, many offer little financial benefit, and some are actually illegal scams disguised as business opportunities.
Here’s what you need to know to protect yourself and your loved ones.
A legitimate MLM business involves selling products or services — such as nutrition supplements, beauty products, or home goods — to friends, family, and acquaintances. Participants can also earn commissions by recruiting others.
Some well-known MLM companies include Amway and Mary Kay. However, while a few participants earn money, most people in MLM programs make little or no profit.
Pyramid schemes look like MLMs but are illegal.
In pyramid schemes:
No real product or service is sold.
Money is made only by recruiting new participants.
The focus is on recruitment rather than selling goods.
The scheme eventually collapses, leaving most participants with financial losses.
Be cautious if you notice:
Promises of big profits with little effort
Upfront fees just to participate
Focus on recruiting others rather than selling products
Pressure to act quickly or “not miss out”
Encouragement to buy large amounts of inventory
Poor-quality or overpriced products
Lack of clear information about the company.
Remember: If it sounds too good to be true, it probably is.
Do thorough research: Look up the company online and check for complaints or lawsuits.
Verify product quality: Be wary of companies selling outdated or low-value products.
Ask questions: A legitimate company should clearly explain how you’ll make money.
Talk to trusted advisors: Ask family, friends, or even an attorney for advice.
Never rely on credit or loans to join an MLM program.
Always review any contract carefully and don’t let anyone rush you into signing.
If you’re concerned about an MLM offer or think you might have encountered a pyramid scheme, SMP Hawaii is here to help:
📞 Call 1-800-296-9422
📧 Email info@smphawaii.org
🌐 Visit smphawaii.org
Stay informed. Stay cautious. Together, we can protect Hawaii’s kūpuna from scams and financial loss.
