Hello Experience League Community,
I’m seeking insights and guidance on the topic of MLM and its legal status in the United States. With MLM being a popular business model, especially for promoting products and services, there’s often confusion about what makes it legal versus illegal.
Discussion Points
- Comprehending the difference between MLM and Pyramid Schemes:
When does MLM transition from legitimate sales and recruiting to an illegal pyramid scheme?
What are the main factors that set apart lawful MLM structures from illicit schemes?
- Regulatory Oversight in the USA:
- What function do agencies such as the Federal Trade Commission (FTC) serve in overseeing MLM companies?
- Must MLM companies adhere to specific compliance standards in order to legally operate in the U.S.?
- Best Practices for Legality:
- What are some examples of legitimate MLM companies and the practices they follow to remain within legal bounds?
- Are there resources for individuals to verify an MLM company’s legitimacy before joining?
Call for Insights
If you are familiar with MLM models or have an understanding of U.S. regulations, I would appreciate hearing your perspectives.
