Multi-Level Marketing and Pyramid Schemes
Multi-level marketing (MLM) is a long-established method of marketing and distributing products and services directly to the general public. However, some MLM plans are fraudulent pyramid schemes, defrauding participants of millions of dollars. This article provides guidance for consumers who are considering joining an MLM plan by highlighting the differences between a legitimate MLM plan and an illegal pyramid scheme.
Already a Practical Law customer? Sign in
Get access to this document with Practical Law
Why Practical Law?
Gain a built-in attorney network
Practical Law’s resources are written and maintained by over 650 dedicated, full-time attorney-editors globally. They’re highly qualified, having practiced at the world’s leading law firms, corporate law departments, and government agencies, so they understand the challenges you face. They dedicate themselves to creating resources to help you navigate the new legal realities, legislative changes, and practice areas impacting your clients or organization.
See how to leverage the expertise of Practical Law’s attorney-editors to help you practice more efficiently.
Expert guidance
650+ full-time, experienced attorney-editors keep you up to date globally
Total resources
118,000+ total resources across 17 practice areas ensure comprehensive coverage
Timely updates
150,000+ hours spent in 2025 maintaining and updating resources
.png){kind=logo}
