Multi-Level Marketing Law & Legal Definition
Multi-level marketing involves independent business owners who set up their own distribution and sales network, often out of their homes rather than by company established distribution and/or by independent stores. The multilevel marketing concept involves people who sign up to sell a company’s products, with the company paying a commission on all sales generated by that person, as well as the additional distributors the person recruits. Some multi-level marketing schemes are illegal, typically known as pyramid schemes. This is when the head of the sales network pays several members at the top of sales network, but pays out far less than is collected.
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