A Pyramid Scheme?
An illegal Pyramid Scheme
Direct selling is often misconceived as a pyramid scheme with the remuneration depending on acquiring new people into the system, not on selling or consuming products. This unfair business practice is explicitly forbidden by the AOP Articles of Association and the effective legal regulations and as such is illegal. To distinguish a pyramid scheme from direct selling it is important to identify whether a company sells products or only requires a financial contribution. Sound direct selling companies sell quality goods for competitive prices to final consumers on a controlled market.