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
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