MLM Fraud is Averted by Strict Governmental Regulations
There are strict governmental regulations against MLM fraud in the United States for ALL Multi Level Marketing Companies put into place by the Consumer Protection Agency and the Federal Trade Commission.
Top MLM companies like Amway, Melaleuca, Mannatech, Mary Kay, The Pampered Chef, PrePaid Legal, Team National, and many others sell billions of dollars in products and services to happy customers and to distributors who make money when they sell these products or services. As long as there is some sort of product or service involved that you can make money by selling, you're probably not encountering fraud.
So, to sum it all up, the regulations that are in place are there to keep fraud in check. Does this mean that we no longer have to worry about any fraud in America???
NO WAY!!!
But it does keep most of the well known companies in check.
Just remember...
if it sounds too good to be true, it's probably FRAUD!!!
Compare MLM Business Opportunities to Corporate America
Look at the triangular structure of corporate America.
Almost every organization in the world uses this type of structure!
1) A salesperson gets a commission on his sales;
2) Sales managers get their commission on the sales of all the salespeople in their group.
3) Then a sales director gets his compensation based on the commissions of all the sales managers.
4)Finally, Vice Presidents, Presidents and CEO's get even more!
In other words, Corporate America is almost identical in structure to a legitimate MLM or Network Marketing Company's business structure!!! In addition, the same regulatory agencies the regulate Corporate America, also regulate Multi Level Marketing Companies.
Zelda's Proverb

"Two choices...Be your own boss, or work for a boss? I, Zelda Q. Foxknocker, choose to be my own boss. It's easier to take a 3 hour lunch break for shoe shoppin' that way, Dahling!"
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