Is MLM illegal according to most countries laws?
Public Comments
- Most countries have laws regarding "Ponzi" schemes, and MLM is really just a thinly-disguised Ponzi scheme...
- only if they are proven to be scams because some of them work
- In most countries, MLM is perfectly legal. In MLM you receive commission on your sales and the sales that people below you make. What is generally ILLEGAL is receiving compensation for bringing a new person into the program. MLM is often times a compensaion plan used in Direct Selling. I would suggest making sure that any company you are considering belongs to the local DSA so that you have some protection and buyback guarantees.
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