Published 2001
“…Multilevel marketing is a popular marketing
method often practiced by direct selling companies.However, it has been manipulated
in the form of the illegal
pyramid scheme or
commonly known as the get-rich-quick scheme, This paper intends to discuss the differences
between MLM and
pyramid schemes, the regulations on MLM and anti-pyramid laws in
other countries, and the loopholes of the existing Direct Sales Act 1993 in Malaysia
especially regarding provisions on MLM technical operations.It was suggested that amendments or provisions should be made on the
MLM operations particularly provisions concerning start-up fees, inventory loading and a balanced compensation system.Additionally, consumer education and awareness as well as stringent enforcement should also be enforced.…”
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