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MLM Legal

MLM companies and independent contractors (distributors) must understand the local, national and international laws that regulate the MLM and direct selling industry. In the United States, the direct selling industry is regulated by Federal Trade Commission rulings that influence commission plans or income claims. The sale of products is also regulated for all industries such as the three day return rate. In international legal cases, national and local laws vary.

  • June 15, 2010

    The Binary & The Law: A Guilt by Association

    The legality of a network marketing opportunity has little to do with the design of their compensation structure and everything to do with the motivation for buying their products. Every type of compensation plan, be it binary, matrix, unilevel, breakaway, or Aussie 2-up, has it's advantages and disadv... Read more ›