A class action lawsuit has been filed against video communications giant Talk Fusion that accuses the company of operating a pyramid scheme, a business practice that is illegal in the United States and other parts of the world. The suit was filed in a California court by Dennis Gray, who claims that he was deceived by Talk Fusion. Gray believed the business opportunity touted by the organization was a legitimate way to earn money. In fact, the suit contends, Gray and other class members lost money due to Talk Fusion’s unfair and unlawful scheme.
A pyramid scheme is essentially an illegal investment scam in which participants at the bottom pay to join, most often with the promise of eventual large earnings. Yet, the only true earnings come with recruitment of more people at the bottom. Money only goes to the early participants, those closer to the top, and that money comes from those at the base of the pyramid. The model is unsustainable and rarely involves any real services or products of true value. Its only purpose is to funnel money toward the top under misleading pretenses.
The lawsuit against Talk Fusion asserts the company utilizes the pyramid scheme model, recruiting workers with the promise of large sales commissions, and yet first requiring them to purchase product packages ranging from $250 to $1,499. These costs do not include Talk Fusion’s monthly storage fees of $35 to $215 per month, which the recruits are also forced to pay, as well as a $39 sign-up fee. All this money is for the right to be a participant in the “Talk Fusion Opportunity.”
Those who pay into this “opportunity” are told they will be selling “revolutionary technology” that provide them a lifetime residual income. However, most of the Talk Fusion products are already available either for free or at much lower monthly rates than Talk Fusion provides.
Since public retail sales are not “feasibly profitable,” according to the lawsuit, Talk Fusion’s large sums of money come from recruiting staff under misleading pretenses, and forcing them to pay for the company’s video conferencing packages.