If MLM’s are widely seen as modern day pyramid schemes. Why are they not considered to be illegal?
In: Economics
They exploit a loophole in the laws because they can function as a normal business. You can just make money by selling herbal supplements, or whatever the MLM’s product is. So in theory, you could just be good at selling their product and not need to engage in the pyramid scheme elements of the MLM. But in practice, most people get caught up in that side of things.
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