Is MLM Multi-Level Marketing Legal In India?

MLM is referred to as multi-level marketing or network marketing and MLM business is legal in India. 

Why is multi-level marketing legal?

According to 2015, FICCI report compiled by KPMG in 2015 MLM is an INR 75 Billion Market in India. Multi-level marketing legal business with significant tax revenue and self-employment opportunities across India. 

Is multi-level marketing legal?

Yes. This is a structured and well-recognised business and millions of people already involved with this business as a part-time and full-time opportunity. Some of the best MLM legal companies in India include Amway, Avon, Vestige, Asort and Forever Living, etc. All these companies are floated in the Indian market with a bid to increase MLM business and provided self-employment opportunities that directed at housewives, retired persons, and unemployed people. Multi-level marketing legal and employment opportunity with less investment. This is the commission-based and low-cost business with attractive rewards plan. According to the MLM law, this business works on the MLM business model where the consumer directly purchases a product or a service from the organisation, rather of involving a broker or a retail shop.  

So many times we heard that MLM is an illegal business but seldom distributors have not achieved success and they quit MLM business, this was the reason some of the people thought that this business is illegal and the direct selling company are doing fraud with them. There are lots of success stories with this business and there is also some failure as well, it totally depends on that distributor.

Numerous distributors also have the passion to achieve success in a short time of period and they are beginning spreading fake information about the business or making false promises to provide fixed income. 

How is multi-level marketing legal?

This is legal and approved by the government of India. According to the multi-level marketing law, they offer a commission or incentive-based income to there independent distributors on their sales performance. In a pyramid scheme laws, any legal MLM company compels individuals who have a desire to join to make a payment.