Laws and Regulations Covering Multi-Level Marketing Programs and Pyramid Schemes

Laws and Regulations Covering Multi-Level Marketing Programs and Pyramid Schemes

Click on the links to see the current MLM and anti-pyramid scheme laws and regulations in your country.

Anti-Pyramid Scheme Laws in

United States

Britain (United Kingdom)

Australia

New Zealand

Pyramid selling schemes are prohibited under the Fair Trading Act. The Act is enforced by the Commerce Commission. If you have been approached to join a scheme, which you suspect may be pyramid selling, we suggest you inform the Commerce Commission.  Individuals and corporations can be fined up to $200,000 for promoting, or operating a pyramid scheme. Offenders can also be required to pay an extra penalty based on the amount they have gained commercially from their involvement in the scheme. 

Also see:

• How do pyramid schemes work?
• Names of known Pyramid scams
• Checklist to evaluate an MLM program that you are considering
• More resources, references and links to other websites that investigate and expose MLMs