Network marketing is a completely legitimate business. It has nothing to do with ‘pyramid selling‘ or chain-letter-type scams which have made newspaper headlines. Indeed, the worst excesses of pyramid operations have been largely stopped through legislation and consumer education.
For example, in the United Kingdom, legislation was passed in 1973 which detailed:
- what could be said in advertisements
- which promises could be made
- which information could be included in documents issued by promoters
- what the rights of distributors were
- undesirable practices such as charging for training.
- that network marketing companies were also required to buy back certain stock from their distributors on termination of any contract.
These regulations have been extremely effective in ridding the system of abuse. ..more
