Southwestern Advantage Scam
Hi everyone,
You may have seen posts on Facebook or heard rumors about young women going door-to-door selling magazines or school supplies, with claims that they’re scouting for young girls to traffic. Let’s get this straight: this is NOT true. That rumor was widely debunked back in 2013. However, this doesn’t mean there’s nothing to worry about. While these salespeople aren’t looking to kidnap anyone, they are often victims themselves — victims of labor trafficking.
This practice falls under a larger pattern we’ve seen in other areas, like kids selling candy on the street or gathering signatures outside stores for new laws. It’s all part of exploitative schemes that prey on vulnerable individuals.
For those unfamiliar, MLMs are essentially modified pyramid schemes. A recruiter sells you a product and convinces you to sell it to customers for a markup. Meanwhile, the recruiter buys from their own recruiter, and the cycle continues. You’re not an actual employee — you’re labeled as an “independent contractor.” This means you don’t get benefits, guaranteed pay, or job protections.
In this particular scam, foreign exchange students are recruited to sell school supplies for a company called Southwestern Advantage.
On paper, Southwestern Advantage looks legitimate. The company is even accredited by the Better Business Bureau. However, the reviews tell a different story. Many customers report being charged for products they never received or for services they had already canceled.
The salespeople, typically young students, often obtain permits from local cities to sell door-to-door. While this might seem like a stamp of approval, experts warn that just because a company has municipal permits doesn’t mean it’s ethical — or even safe.
Here’s where it gets worse: Southwestern Advantage has a long and troubling history.
- Banned on university campuses: Several universities in the U.S. and abroad have banned the company due to its exploitative practices.
- Investigations and lawsuits: They’ve been investigated for human trafficking, money laundering, and RICO violations. They’ve also faced repeated lawsuits dating back to the 1990s.
- Exploitation of students: Salespeople are expected to work 85+ hours a week without guaranteed pay. They must cover their own expenses, including transportation, food, and lodging. Students are often left broke, exhausted, and without recourse.
This setup mirrors other exploitative schemes investigated by Congress, such as those involving magazine sales crews. These setups often involve mistreatment, long hours, and no safety net for the workers.
So, will these salespeople kidnap your children? No.
Should you buy from them? Also no.
Buying from them perpetuates a system of exploitation. These individuals, often young students or vulnerable workers, are the real victims. Instead of supporting these operations, we should educate ourselves and others about labor trafficking and how to spot unethical practices.
If you want to help, consider donating to reputable organizations that support victims of trafficking or raising awareness about these exploitative MLM schemes. Let’s focus on creating a safer and more ethical world for everyone involved.
