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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.

CROSS-REFERENCES

Consumer Protection.

Additional topics

Law Library - American Law and Legal InformationFree Legal Encyclopedia: Ministerial to National Education Association