PSA: Multi-Level Marketing Companies

csimt 2021, Audio, CSI Public Announcement

Dozens of multi-level marketing companies operate in our State, but only around ten are properly filed with our agency.

To simplify, a multi-level marketing company or MLM is a company where you sell products to a network of customers who also sell to their own customers. You get compensated with a part of each sale made by each customer/salesperson down the line.

This is Commissioner Troy Downing. There can be a fine line between a multi-level marketing company and a pyramid scheme. MLMs are perfectly legal, but we have no way of knowing if companies are acting within the law unless they file. 

We are cracking down on MLMs who are not following the rules. If you have a question about an MLM, check with our agency to ensure it is properly filed and vetted by our team by calling 444-2040.