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Pyramid Schemes A Black Eye for Power Retailing?

Fortnightly Magazine - May 1 1998

process to see how selling in this market will work."

Despite the bad publicity generated by Boston-Finney, Foster doesn't feel any discomfort in working with a multilevel marketer, particularly Amway, in business since the early 1950s.

Although Amway initiated the relationship, Enron was impressed by its track record representing MCI at the start of long-distance phone service deregulation. "Amway helped make MCI the success it is today," says Foster.

"Three or four years from now, when the rules are better defined, the fact that we are reselling electricity through a multilevel marketer may not even be an issue," he says. "When you consider that a $24-billion company like Enron is working with a long-established company like Amway, I don't think there's any reason for the consumer (em or regulators (em to be concerned."

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