← Return to the docket
In ordinary words.
A business may reward distributors for sales through a network of recruits, if its compensation structure stays lawful.
In legal terms.
Legitimate multilevel marketing is distinct from prohibited pyramid schemes; regulators assess actual retail sales, incentives and misleading earnings representations.
Where it stops being legal.
Recruitment-driven payments and deceptive income claims can violate consumer-protection laws.
General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.