Montana drops cease and desist order against ACN

by louabbott on September 20, 2010

But still charges that ACN (formerly, American Communications Network) is a “Pyramid Scheme” . . .

On Saturday, the Charlotte Observer, published this update on the Montana vs. ACN issue:

Securities regulators in Montana have dropped a temporary cease and desist order against Concord-based ACN Inc., but regulators say they will still pursue fines and refunds, charging that the company is a “pyramid scheme.”

Deputy Securities Commissioner Lynne Egan says the order never prohibited ACN from doing business in Montana but put the company on notice to abide by Montana law.

ACN executive vice president Dave Merriman has said the case is the result of a “big misunderstanding” and the company intends to fight it.

. . .

Securities lawyers in Montana claim in legal filings that the only way for sales reps to be compensated is to recruit other participants to sell a service that is not usable in Montana. Merriman says the allegation is a misinterpretation of the company’s own data.

Montana officials say the video phone can’t be used in most of Montana because little of the state has high-speed broadband Internet access, and ACN sells phone service over the Internet.

Montana is pursuing fines and refunds by presenting its case before a hearing officer, a lawyer agreed upon by both parties to hear the case. A conference call has been set for Oct. 6 to schedule a hearing.

Read more balance of the article here:

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{ 7 comments… read them below or add one }

mark September 26, 2013 at 12:13 pm Thumb up 0 Thumb down 1

Good luck making more than minimum wage with any MLM unless you recruit dozen’s of people below you. Also I have looked at their products. I have always found better prices some where else.


Succeess Train October 13, 2010 at 12:10 am Thumb up 3 Thumb down 2

3 – 0
Enough said 🙂


Success Train September 21, 2010 at 10:53 am Thumb up 5 Thumb down 2

Question – if Montana truly believes that ACN is a pyramid scheme, then why did Montana lift the ceist and desist order (especially after ACN complied with the order)? If they wanted ACN out of business, why did they petition for the very documents that allowed ACN to start doing business again?

Maybe Montana know they “jumped the gun” with this filing…..congrats to ACN for understanding and always complying with MLM law. Thank You.


Terence September 20, 2010 at 10:59 pm Thumb up 2 Thumb down 2

It sounds to me that Montana is on a witch hunt about something they don’t understand. By them dropping the cease and desist order is just the begining of them waisting their tax payer’s dollars on a losing battle. I think ACN is a great company.


Diane September 20, 2010 at 1:19 pm Thumb up 4 Thumb down 3

ACN is an honest company. Only reps who follow through with the trainingl and work hard will make it in any MLM. ACN has the best business model of any MLM. ACN partners with companies who sell us the products we all use…Wireless, TV, Internet, etc.


Julie September 20, 2010 at 12:08 pm Thumb up 3 Thumb down 2

There was a time when franchises and chain stores were looked upon with great scrutiny as well, and I agree with David. Sad fact is there are some “unscrupulous” businesses out there and people continue to lump the few bad apples in with the good ones and make assumptions about us all. Truth will win in the end here, though!! It always does, and ACN’s track record of integrity speaks for itself.


David Johnson September 20, 2010 at 11:17 am Thumb up 5 Thumb down 3

It seems to me that Montana is unduly nitpicking on network marketing companies. I’m wondering if the state is going after computer stores like Best Buy for selling gigabit network cards, routers, and modems to consumers who don’t have high-speed broadband internet access.

Network marketing needs to create a mainstream image in order to get past the pyramid scheme persona. To me, the network marketing companies need to band together to form a political action community and lobby politicians to view their industry just as legitimate as franchising or any brick and mortar business model.

You would never see this kind of nitpicking against big business or franchises. They’ve PAC’d up long ago and told politicians to mind their own business.


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