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In terms of illegal business scheme, it is not. There was nation wide lawsuit in 80´ about legitimacy of MLM system and the system itself represented by the Amway as the biggest company was found legal and in fact very healthy for business environment.

In terms of structure of the distributing network it is a pyramid - as any other big organization like school, government or army.

Guidelines to determine wheter any company is a illegal pyramid are these:

1) Profit is made from selling product and from sales of recruited distributors, not from registering distributors.

2) There is return policy on registration fee or costs, as well as for products.

3) There aren´t any obligatory purchases.

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16y ago

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