State Settles One Complaint Over Pyramid Scheme

Idaho laws prohibit pyramid schemes - where a person’s promised income is derived primarily from the introduction of other people into the scheme, and not from the sale of foods and services.

The attorney general’s Consumer Protection Division has settled one complaint filed over a pyramid scheme, and Attorney General Alan Lance says his agency has filed a suit against another company and its chief officer.

Lance said Nutrition For Life International Inc. and one of its salesman, Kevin Mark Trudeau, have agreed to settle a state complaint.

Under the settlement, the company will pay $7,500.

Lance said he will use part of the money for a consumer education program to inform consumers of the differences between pyramid and legitimate multi-level marketing companies.

A pamphlet will be published to arm consumers with useful information, Lance said.

Under terms of the settlement, Nutrition for Life, a Texas company, and Trudeau, who listed an Illinois address, must ensure that distributors in their sales system actually sell goods to consumers to qualify for commissions from other distributors.