Multilevel Distributorship

Multilevel Distributorship

A type of referral sales scheme by which an individual who purchases a particular item from a company agrees to solicit and provide additional buyers for the product in exchange for a commission or rebate from the company.

This type of plan is also known as a pyramid sales scheme and is against the law in many jurisdictions.


Consumer Protection.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
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