Isn’t MLM legal in most jurisdictions?
To those who understand the compensation plans, MLM has in the past been technically illegal in most jurisdictions where statutes against pyramid schemes are in place. However, MLM spokesmen and the Direct Selling Association (DSA) have used deceptive tactics and information to weaken statutes against pyramid schemes in several states and has even attempted to get protection from Congress. Unfortunately, even in jurisdictions where MLM clearly satisfies the definition of an illegal pyramid scheme or endless chain, such laws are seldom enforced. As explained below, this is due primarily to the silence of victims, who rarely file complaints. (See MLM Regulation and Law Enforcement) And I might add – the politicians to whom MLMs give generous political contributions cooperate with the DSA to protect MLMs from laws that would otherwise provide protection for consumers. For news and information on legal cases and legislation related to MLM and other types of pyramid schemes, go to the Pyram
