Is the LiveGood MLM Legal? Network marketing is legal according to case law established by the Federal Trade Commission vs Amway in 1975 The structure of network marketing, which includes paying on more than one level, is legal Many industries and companies also pay on more than one level but they are not called multi-level marketing companies Corporate activities that can make network marketing illegal include not having a buyback policy for unsold inventory and not following the 70% rule for inventory management Distributors should aim to have at least ten retail customers, but this is not an established law Distributors should be transparent about their income and not misrepresent it Distributors should not make product claims that are not supported by evidence Join LiveGood with Rich.