If you're thinking that multi level marketing or MLM companies are all scams or they're the same as pyramid schemes, you may be surprised to find out how some very well-known companies actually operate. In 1979, it was under investigation by the FTC , which ultimately found that though it was guilty of deceptive marketing practices, it was not an illegal pyramid scheme; in 2010, it agreed to pay $34 million in cash and provide $22 million worth of products as part of a settlement for a class-action lawsuit alleging that the company misled recruits into believing they could earn more than they actually could.
And in 2010, Amway itself settled a class-action lawsuit —filed by its independent business owners” against the company under its former name, Quixtar—alleging that the MLM operated as a pyramid scheme that scammed” lower-level sellers out of millions Amway agreed to pay out $34 million in cash and another $22 million in products, but did not admit to any wrongdoing under the settlement and rejected the characterization of its business as a pyramid scheme.



Chavi Hemanth, secretary general, Indian Direct Selling Association (IDSA), said, "According to survey report of IDSA with ICRIER the PCMCS (Banning) Act, 1978 is not amway pyramid scheme applicable to direct selling as it is a trade and commerce activity wherein PCMCS (Banning) Act, 1978 was formulated with an aim to regulate financial schemes".
ZDNet reported on Amway's entry into e-tailing which is known as Quixtar All Amway agents (now to be known as IBOs: independent business owners) have been invited to open up their own e-mall, selling not only Amway products but products of other manufacturers as well.

What the proposed legislation would change is that, going forward, the federal courts would have a uniform legal standard for an illegal pyramid, and legitimate MLMs would not have to expend significant resources defending against lawsuits based on a false legal premise.
Amway's leading brands include Nutrilite vitamin and mineral dietary supplements and Artistry skin care and cosmetics In addition, the company offers the eSpring water purifying system ; Legacy of Clean environmentally-conscious home cleaning products , and Atmosphere home air treatment systems , among others.
Forever does not condone pressure of any description, misrepresentation of lifestyle, the business opportunity or promises of income levels, the company has clearly defined escalation procedures to deal with any such allegations.” An online company policy handbook lists prohibited activities for Forever members, and refers to the DSA's dispute handling service.

Usually it is a financial service that really makes no sense at all, or is so confusing you have no chance of ever understanding it. Companies like these are to be wary of. However, there are good MLMs that deal with financial services or other services.