Number of MLMs registered in Montana more than doubles under amnesty period

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Number of MLMs registered in Montana more than doubles under amnesty period | 406 Politics | helenair.com

Seventeen multi-level companies took advantage of an amnesty offering from the state auditor’s office to come into compliance with state law and pay reduced fines.

The amnesty period ended Wednesday, and the companies that came into compliance had about 4,200 Montanans participating in their operations.

“This is a win for Montana consumers. By filing with our agency, we can review the company’s application and confirm that they are not running an illegal pyramid scheme,” state Commissioner of Securities and Insurance Troy Downing said in a press release this week. “… We will hold non-compliant companies responsible if they do not comply with Montana law.”

The companies that filed during the amnesty period include: Life Platform, Auvoria Prime, Breathless Wines, Chalk Couture, Epicure, Faberlic Inc., Farmasi, Hugh & Grace, Seint, Think Goodness LLC,  Topaganda Scents, It Works!, Zinzino LLC, Healy World Co., ASEA, LLC, Beautycounter, Sisel International LLC, Unicity USA Inc., and Monat.

The auditor’s office said in a press release that more applications post-marked by Dec. 15 could still be accepted. While 19 total filed, Breathless Wines and Faberlic Inc. don’t have participants in Montana and weren’t seeking amnesty, but did file during the period.

Since 1999 under laws passed by the state Legislature, multi-level marketing companies were required to register with the state Auditor’s office so the office could monitor to ensure the companies were not operating pyramid schemes.

Pyramid schemes, which are illegal, differ from multi-level marketing companies in that in a pyramid scheme a person’s compensation is based more on getting people into the program than it is from earning commissions on selling products.

Before the amnesty program, there were 14 multi-level marketing companies registered with the state Auditor’s office

Under the program, companies that came into compliance paid a $1,000 fine.  Those that were out of compliance could have been fined $5,000 for every year they failed to file.