Legitimate Multi-Level Marketing Plans Versus Illegal Pyramid Schemes | Practical Law
A Practice Note discussing multi-level marketing (MLM) programs under the Federal Trade Commission (FTC) Act. This Note reviews MLM plans and highlights the differences between a legitimate MLM plan and a fraudulent pyramid scheme. This Note also includes guidance to MLM businesses on how to mitigate the risk of an FTC enforcement action, a discussion of MLM compliance programs, and a section on the Direct Selling Self-Regulatory Council (DSSRC).