Duhaime's Law Dictionary


Multi-level Marketing Definition:

A system for selling products in which participants get paid for selling products to other participants who, in turn, are paid for selling the same products to yet more participants.

Also known as a pyramid selling scheme, the system can be lucrative for those at the top: the first sellers.

In Canada, multi-level marketing plans are controlled under the Competition Act and is defined at §55 as:

"... a plan for the supply of a product whereby a participant in the plan receives compensation for the supply of the product to another participant in the plan who, in turn, receives compensation for the supply of the same or another product to other participants in the plan."

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