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Multi-Level Marketing And Its Brethren: The Legal And Regulatory Environment In The Down Economy, Adam Epstein

Adam Epstein

This article explores the legal and regulatory environment of multi-level marketing companies also known as MLM. Legal research is lacking in this area of business law though the regulatory environment involves a combination of federal and state laws including administrative agencies such as the FTC and SEC. In the current down economy, criminal enterprises such as Ponzi schemes have been exposed. MLMs are often compared to Ponzi and pyramid schemes and do share similarities. The article offers that personal responsibility is vital when determining whether to join any MLM in light of the volume of resources available on the internet.