Is MLM legal?
Unless a particular country has laws that prohibit direct selling, MLM is usually perfectly legal. Some countries, states or provinces have laws or regulations that may limit what you’re permitted to do in your MLM business (such as Not For Retail, cooling-off periods, no products kit sales in the first week or month or similar). how you conduct your MLM business. The laws are usually a well-meaning attempt by authorities to prevent unethical conduct. Unfortunately, they're really an attempt to control motives and attitudes, which can't be legislated, so they too often end up having the wrong effect on the wrong people
Legally speaking, MLMs have been legal in Singapore since June 2000, when the government finally recognized it as a method of product distribution, rather than a Pyramid Scheme. The land where MLMs first originated with a links2 called Amway) has slapped a whole list of conditions on an MLM system to set it apart from Pyramid Schemes.
Many MLMs toe a very thin line to Pyramid Schemes. The problem does not lie with the marketing system (which actually represents a very cheap method of product distribution for the parent links2). Rather, it lies with the people who promote the products. In some cases, the way the system is run by the links2 also makes it a form of legalized Pyramid Scheme.
As we work with clients, offer our marketing and strategic advice, there is nothing more important we could recommend than to secure solid legal counsel. If we did nothing else but put our clients in touch with who we consider to be the absolute BEST MLM Legal team and Law firm available today, we would be satisfied that we did our duty to better our clients chances of survival!