In Germany, if you register a company, your accountant will warn you that you'll get scam invoices. The notary that does the legal stuff will warn you. And finally the official court registry will send you a letter warning you that you'll get scam invoices (their letter arrives after the first scam invoices, though).
It's ridiculous. Everybody knows it's a scam, they even give themselves official-sounding names to pretend that they are the official registry, and yet the government just folds and says "I guess we can't do anything". It's a joke.
It's the same with pyramid schemes. Essentially all "Direct Marketing" businesses of any significant size are just a pyramid scheme of course, but governments are reluctant to try to jail people for it, since of course these people will have all the resources of their bogus "company" to throw at the court case. So they mostly limit themselves to trying to force these companies to "explain" their "Direct Marketing" company in a way that should help more victims to spot the scam before they lose their life savings.
For example they might oblige the company to tell (albeit not necessarily very obviously in headline fonts) its new "independent business owners" that only 0.01% of such "independent business owners" make any money at all in a typical year's operations. That's the sort of sobering statistic that might persuade some other gullible people to reconsider. Or not.
But just going in and shutting down the business - they're not keen. After all, the same victims will likely just sign up for another and perhaps even more predatory pyramid scheme.
My favourite scheme (I used to research these) had a setup where they sold basically mediocre fruit juice as a health product, and it's a pyramid scheme but then the extra genius is that the product sold through this pyramid scheme is itself bogus. So even the underlying business, ignoring the pyramid structure, is crooked anyway. The corporations were set up such that if the pyramid scheme is busted it has no money, all the "real" profit went to the notionally separate company making mediocre fruit juice. They can claim ignorance of the pyramid scheme and of the bogus health claims, everything, and they keep all the money. Brilliant.
This is the same reason everyone gets a hundred spam calls a year. There is zero enforcement even though most times you can deanonymize these scammers with 15min of googling or talking to them.
Scambaiting has been popular on Youtube for years. They seem to be the only ones doing anything about it.
The arrests last November in India shutting down the call center was a rarity.
It's ridiculous. Everybody knows it's a scam, they even give themselves official-sounding names to pretend that they are the official registry, and yet the government just folds and says "I guess we can't do anything". It's a joke.