Month: September 2018

Legal Advice For Multi-level Marketers

Multi-level marketing (MLM) is a popular method of selling products. In this system, participants get paid for selling various products to other participants. These participants are then compensated for selling those same products to even more participants. Ultimately, the individual is not only responsible for his/her own performance - but also the performance of the other sales people they recruit.

At first glance, this type of structure may seem illegal because it resembles what is commonly referred to as a "pyramid scheme." But multi-level marketing is a legal practice as long as it does not break the rules of Canada's Competition Act. High-profile and profitable companies like Avon, Electrolux and Tupperware all use MLM methods legally and effectively.



1. Seek advice from the Competition Bureau

Before recruiting participants, submit a copy of your MLM plan to Canada's competition bureau. Ask the bureau for a written review of your documents to see if you will be breaking any criminal codes. More information can be found at: . The RCMP's website is also known to provide excellent guidance.

2. Review the concepts of pyramid selling


3. Contact a lawyer who specializes in MLM
