Should Multi-level marketing (MLM) be criminalized?

Posted by: cludwig

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.

5 Total Votes

Yes, prosecute and shut them all down

MLMs are pyramid schemes (scams) that simply use the product to hide their pyramid structure. Only a handful of people at the top of an MLM make the vast bulk of the money, while almost all the participants/victims lose money or make next to nothi... ng for their efforts. MLMs are parasites that leave nothing but destruction and misery in their path   more
2 votes

No, MLMs are as legitimite as any business model

Every business is in essence pyramidal in shape. The CEO and management enjoy the biggest compensation levels, while entry employees start out with the least compensation. MLM's are no different than any mainstream job or company in this way.
2 votes

Yes, MLM's are evil and need to be wiped off the face of the planet indiscriminately

The penalties for creating and/or participating in a Multi-level Marketing Company should be severe indeed.
1 vote
1 comment

No, some are legitimate and some are scams

While some MLMs are pyramid schemes, others are not. Criminalizing MLMs would rightfully shut down many bad apples, but would also wrongfully destroy legitimate businesses. Illegality should be determined on a case by case basis.
0 votes
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