McaScam written by: likocha


There has been a heated debate in the public on whether the Motor Club of America (MCA) is a Multi level Marketing Program or a Pyramid Scheme. There is a major difference between the two. A multilevel marketing program is one that a person is able to earn money but only through the sales they make to the public. A pyramid scheme on the hand is where a person depends on the number of people who join the company and not only that, it also depends on the amount of money the people who have been recruited to join pay.

The Vital Connection (TVC) is the company that owns MCA. As the club’s website states, it provides the following services: It provides legal assistance when one is pulled over, long distance and unlimited tows, emergency room and in-hospital coverage resulting from a covered accident, accidental death coverage and they help with medical emergencies when one is travelling. They also offer their associates with the option of earning some money if they are able to refer a person to them. If the person joins, they get a percentage of what the joined member pays. This is where the discussion of whether or not it is a pyramid scheme arises.

A pyramid scheme has very distinct features:

1. It is illegal

2. For one to join the company, they have to pay a certain fee beforehand.

3. There is no actual product but an investment that believed to be non-existent.

4. There is no sale that occurs.

5. It is fraudulent

The above are the tell- tale signs that a company is a pyramid scheme. It is clear that the reason why people are calling MCA a pyramid scheme is because the people who join are told to bring others to join and the cycle continues. This therefore begs the question, is the main income of MCA based on the services they sell to the public or is it based on the number of people who join the company?

For now, the Federal Trade Commission (FTC) which clearly states on its website the tell-tale signs that a company is a pyramid scheme and not a multi level marketing program, has not listed MCA as a scam on its website. If it was, it would have been shut down. FTC has been very transparent in showing what companies are fraudulent on their company website in order to protect its consumers. The fact that it represents the government and the government is the people for the people, it would be right to say that the protection of consumers is its major duty.

Because people have the right to free speech, the discussion on whether MCA is a scam or not will continue. In as much as people are quick to beat whatever business MCA is involved in, there is a principle in business that is called “the willing buyer, willing seller principle”. Before deciding to buy whatever product, it is advisable to investigate and do some research before making a purchase. This is because ignorance is not a defense.