The President of the College of New Jersey receives a letter from DSEF Direct Selling Education Foundation about Anti MLM Conference on Building Fortunes Radio with Scott Johnson and Peter Mingils
Dear President Bernstein, As Executive Director of the Direct Selling Education Foundation (DSEF), I am writing to share our concerns and those of distinguished scholars of higher education who are established experts in business ethics, marketing and sales models to name a few areas of study. The annual "MLM Conference” (mlmconference.com) created and organized by retired TCNJ faculty member William Keep, PhD, was presented for the fifth consecutive year on May 8-9, 2025.
The one-sided conference, which began with a welcome and enthusiastic endorsement from Interim Dean Tammy Dieterich, TCNJ School of Business, presented false narratives, unsubstantiated research, and failed to provide a true, balanced view of the direct selling distribution channel. We believe it is essential for TCNJ leadership to conduct a thorough audit of this conference and investigate its practice of bias against microentrepreneurs —the majority of whom are women— and the entire direct selling channel.
The suppression of academic freedom at public universities can have significant consequences beyond campus, weakening societal trust in higher education and its ability to serve the public good. Each year the conference presents isolated historical examples of misconduct, cherry-picked and generalized in an attempt to mislead the public and damage the direct selling channel. This content bears no resemblance to the modern reality of direct selling and how companies operate.
Many of the speakers go as far as to claim that all direct selling firms are illegal pyramid schemes, although FTC actions and policy disprove these false and inflammatory claims. The reality: direct selling is a retail consumer sales channel that has been in existence for over a hundred years and includes some of America's best-known companies and consumer brands.
These companies have high ethical standards, collectively employ tens of thousands of people and create jobs. Many of these companies have sophisticated teams of scientists, research and development teams and their own manufacturing facilities. According to a recent study by Dr. Robert A. Peterson of the University of Texas, the annual economic impact of direct selling in the United States alone is $111.4 billion.
It is one thing to have an earnest and honest concern about a particular sector of business or retail channel. However, it is clear that Dr. Keep has a one-sided and biased agenda that is below the stature of The College of New Jersey and its academic standards and, in fact, besmirches the college's reputation as an academic institution. Universities should be safe havens for the free exchange of ideas. Academic freedom means faculty, students and other stakeholders can engage in intellectual debate without the fear of censorship that impairs the rights of others in expressing their viewpoints. Never offering leading academic scholars or direct selling firms the opportunity to present an alternative view of the direct selling channel limits the academic freedom of the educators and stifles the voice of the channel in what should be an open discourse. Furthermore, the Department of Education's policy on academic freedom requires universities to comply with the First Amendment.
Failure to allow free expression, research and rigorous discourse without undue restrictions can jeopardize federal grants. The policy is intended to protect against restrictions that could limit free speech or academic inquiry. Despite numerous offers to provide proven academic research that investigates all viewpoints on direct selling, Dr. Keep has refused to include a balanced review of the industry.
He continues to attack qualified academics from top-tier universities for their industry research as well as the independent contractors who choose to become involved in direct selling.
Additionally, Dr. Keep has allowed critics of the direct selling channel, including one presenter (editor's note: the presenter is Marco Moukhaiber aka Always Marco on YouTube, aka Always Stupid Marco as referenced on Building Fortunes Radio buildingfortunesradio.com , aka also referenced on alwaysmarco.lol ) who cited and quoted from Adolf Hitler's Mein Kampf while Dr. Keep looked on, and other speakers with questionable online practices to have a platform and a voice during his annual forum. I say "his” annual forum, but it is clearly publicly endorsed by The College of New Jersey as both sponsor and host. This is most concerning to us and we hope to you as well. To provide a balanced and fair examination of consumer protection efforts, DSEF hosted a national conference, "Building Trust in the Marketplace,” at Emory University in 2023.
Event speakers included leading academics from around the country as well as individuals and organizations that have been critical of the channel. The same invitation was offered to Dr. Keep, who declined to participate and yet continued to create and produce his onesided conference, calling it "ethical education” for the students at The College of New Jersey. Indeed, is this education or inappropriate advocacy? How can this be an ethical review of an industry if you are only soliciting information from its critics?
And why is the Interim Dean of the School of Business endorsing the demonization of an entire industry? I welcome the opportunity to discuss the implications of this conference for the companies that are part of the direct selling channel, including its potential impact on microentrepreneurs and consumers across the United States. You can reach me via cell at 301-395-3112 or email at [email protected] I look forward to your response and insight following your review of the conference. Thank you, Gary M. Huggins
Executive Director Direct Selling Education Foundation CC: Tammy Dieterich, Vice Provost for Academic Engagement
Dr. Sunita Ahlawat, Interim Dean, School of Business
The following Academic Scholars have reviewed and included their names in support of this letter: Dr. Anne Coughlan, Polk Bros. Chair in Retailing and Professor of Marketing, Emerita, Kellogg School of Management, Northwestern University
Dr. Linda Ferrell, Globe Life Professor of Marketing, Auburn University Dr. O.C. Ferrell, James T. Purcell, Sr. Eminent Scholar in Ethics, Auburn University
Dr. Joe Hair, Director, PhD Program, Cleverdon Chair of Business, Mitchell College of Business, University of South Alabama
Dr. Greg Marshall, Charles Harwood Professor of Marketing & Strategy, The Crummer Graduate School of Business, Rollins College
Dr. Adam Mills, Associate Dean, Associate Professor of Marketing, Chase Professor of Minority Entrepreneurship in Business
Dr. Julie G. Moulard, Balsley-Whitmore Endowed Professor, Associate Professor of Marketing, Louisiana Tech University
Dr. Dianne Welsh, Emerita Distinguished Endowed Professor of Entrepreneurship, University of North at Carolina Greensboro, Distinguished Research Associate, Catholic University of the Most Holy Concepcion, Chile
Original letter: www.dsa.org/docs/default-source/advocacy/dsef-president-tcnj-ltr-8-5-25.pdf?sfvrsn=b3faea5_2
The Amway tools scam is a hidden profit scheme within the Amway multi-level marketing (MLM) structure that exploits distributors, often leaving them with financial losses instead of the promised wealth. Amway, a well-known MLM company, markets health, beauty, and home products through independent business owners (IBOs). While the company emphasizes product sales, the real money for top-tier distributors, often at the Diamond level or above, comes from selling motivational "tools” like books, tapes, seminars, and rallies, not from product sales. These tools, promoted as essential for success, create a separate revenue stream that disproportionately benefits upline leaders while draining the profits of lower-level distributors.Distributors are pressured to purchase these overpriced tools, often costing hundreds or thousands annually, with promises of learning the secrets to building a lucrative Amway business. However, studies and lawsuits reveal that 99% of Amway distributors lose money, with average earnings below $100 monthly after expenses. The tools business, controlled by high-ranking distributors like Dexter Yager, generates millions for the elite, who earn significant markups on items like cassette tapes sold at rallies for up to $10,000 a night in cash. Meanwhile, new recruits face high startup costs—starter kits, training sessions, and product samples—further eroding their profits. This creates a pyramid-like structure where uplines profit from downlines' purchases, not retail sales, resembling an illegal scheme.
The scam thrives on coercion, with uplines leveraging mentorship and cult-like tactics to ensure compliance, threatening to withhold support if tools aren't bought. Legal actions, like the 2007 UK investigation, exposed deceptive practices, yet Amway often deflects blame to "independent” distributors. For most IBOs, the dream of financial freedom becomes a costly trap, enriching the few at the expense of the many.
