But in practice, it sure looks like a pyramid scheme. Have you ever tried Mary Kay or a similar job? This includes a number of employees who have seen the inner workings of the company and are upset by the pyramid scheme structure they feel is hurting distributors. Each recruit is required to pay an “investment” to the recruiter above him and to recruit more investors. Please sign into the comments section and share your thoughts. First published on … Former National Sales Director Amy Dunlap Alleges Mary Kay is a Pyramid Scheme. And that does look like a pyramid scheme,” she said. By Stephanie McNeal. Legal Issues. Further, the lawsuit contends that Mary Kay forced class members to pay fixed, non-negotiable prices for numerous types of sales and marketing materials, like pamphlets and DVDs, while not allowing them from formulating and selecting their own marketing schemes. Last updated on … If YTB is determined to be a pyramid scheme because portions of their sales force were making claims that were not authorized by the "corporate" company, then certainly Mary Kay could be in the same boat as, allegedly, there are members of the Mary Kay sales force that present and operate MK in a manner very similar to(if not exactly like) an illegal pyramid scheme. In a pyramid scheme, an initial investor recruits a second investor to work under him. One employee in particular enjoys the independence of working for herself and being able to earn prizes, but is concerned about the cult-like atmosphere that Mary Kay leaders have created. Continue reading "LuLaRoe Lawsuits: Broken Promises and Pyramid Schemes" Career Ladder, Mary Kay Lawsuits, National Sales Directors. Women Say They're Stuck With $20,000 Of Worthless Clothing In A LuLaRoe "Pyramid Scheme" A new lawsuit against the leggings company says women were encouraged to max out credit cards, take out loans, and even sell their breast milk to keep buying merchandise the company knew they could not sell. Stephanie McNeal BuzzFeed News Reporter. August 22, 2012 August 30, 2020 amy dunlap, isagenix, lawsuit, tattletale 78. This second investor is required to “invest” a certain sum of money to be paid to the initial investor. For the piece, Sole-Smith attended a number of Mary Kay parties and ultimately signed up to move product. He is also required to recruit another investor under him and another and so on.