William & Mary Business Law Review
Abstract
Multilevel marketing companies ("MLMs") have thrived in the internet era as participants are able to market their products to their friends and followers on social media sites. Further, periods of high unemployment, such as during the COVID-19 pandemic, have led to increased enrollment in these companies. However, very few people actually make any money from selling for these companies. Beyond that, almost half of those who participate lose money due to the enrollment costs. This Note examines past case law surrounding MLMs and critiques the current regulations in place that fail to ensure that new participants are making a fully informed decision when they sign up to work for these companies. Ultimately, this Note proposes new disclosure requirements on MLMs that will better protect consumers and make sure that these business structures do not harm financially at-risk populations.