Multi-level marketing and pyramid selling

When operating within the limits set by the Competition Act, multi-level marketing is a legal business activity with set responsibilities for both operators and participants. However, pyramid schemes are illegal multi-level marketing plans that require purchases for participation, compensation for recruitment, inventory loading, or the lack of a buy-back guarantee on reasonable terms.

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Services and information

Multi-level marketing

Legitimate product distribution plans that disclose earnings, time and effort required by participants.

Pyramid selling

Illegal multi-level marketing plans, with conditions for participants, such as compensation for recruitment.

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