If MLM’s are widely seen as modern day pyramid schemes. Why are they not considered to be illegal?
In: Economics
Your premise is flawed. They are not the same thing. They are similar but one is illegal and one is not. A Pyramid scheme usually doesn’t involve the selling of actual products for one. A pyramid scheme is strictly a scam, an unsustainable structure of recuiting people and that’s it. MLM is similar with the recruiting, but they’re actually selling a product and making money come in, it’s not unsustainable, sketchy yes, illegal no. MLMs are only “widely seen as a pyramid scheme” by people who don’t know the definition of both terms and think they’re the same thing.
Edit: downvoted for taking time to answer your easily googlable question, wonderful.
E: here’s an article detailing the differences. But keep downvoting me sure https://www.diffen.com/difference/MLM_vs_Pyramid_Scheme
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