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  • It is sometimes difficult to distinguish enforceable and reputable MLMs from black-market pyramid or Ponzi schemes

  • MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and dissimilar businesses may employment terms like "affiliate marketing" or "home-based business franchising"
  • However, multifarious pyramid schemes try to present themselves as legitimate MLM businesses.

  • The Federal Traffic Commission (FTC) issued a decision, In re

  • Amway Corp
  • in 1979, which indicated that multi-level marketing was not not approved per se
  • However, Amway was found guilty of price fixing (by requiring "independent" distributors to Watkins sell at the deep price) and bureaucratic exaggerated income claims.