Oriflame India Ltd, a member of Indian Direct Selling Association (IDSA) in its website poses the following questions to announce that it is not a pyramid structured company. Just read and laugh with us. All these companies of IDSA are pyramid schemes. There is not a single company which is not a pyramid scheme.
(The risk financial loss is inherent in all these companies' schemes. All these companies offer compensation to the members who purchase products at exorbitant prices. Their compensation is very meager and all the members suffer heavy losses.)
(They hardly get any income from sale of products. They would get income only through enrollment of new members.)
(All these companies anyway insist that you should become a member to purchase products. That it itself is a racket. and a pyramid scheme since enrollment is core issue for all these companies. Without enrollment not a single company survives.)
This is how these companies mislead people on pyramid schemes and try to convince them that their business model is not pyramid scheme.
Have a glance at Prize Chits and Money Circulation Schemes (Banning) Act, 1978 to identify the pyramid schemes.