Every state has adopted laws regulating MLM companies. Visit this page to look up MLM law in your state.read more »
Illinois consumer protection law defines a "pyramid sales scheme" as: "any plan or operation whereby a person, in exchange for money or other thing of value, acquires the opportunity to receive a benefit or thing of value, which is primarily based upon the inducement of additional persons, by himself or others, regardless of number, to participate in the same plan or operation and is not primarily contingent on the volume or quantity of goods, services, or other property sold or distributed or to be sold or distributed to persons for purposes of resale to consumers." Illinois Compiled Statutes Ch. 121 B=, Par. 262A. Pyramid schemes also violate the Illinois Consumer Fraud and Deceptive Business Practices Act which is enforced by the Consumer Fraud Bureau of the Office of the Illinois Attorney General. The law allows the Attorney General to ask the court to impose a civil penalty in the amount of $50,000 per violation.
Other Pages of Interest
MLM law in 50 states, IRS Publication 911, the MLM Textbook, as well as a comprehensive index of articles on the direct selling industry.read more »
Key Pages to Visit While You're Here
For Startup and Existing MLM Companies
Starting and Running the Successful MLM Company manual
The Best MLM Resource on the Web