International Journal of Advanced Research in Management and Social Sciences

  • Year: 2015
  • Volume: 4
  • Issue: 5

Multi-level marketing: comparative perspectives and Indian Dilemma

  • Author:
  • S. N. Girish, Dube Dipa
  • Total Page Count: 19
  • DOI:
  • Page Number: 105 to 123

*Student, Rajiv Gandhi School of Intellectual Property Law, IIT, Kharagpur

**Associate Professor, Rajiv Gandhi School of Intellectual Property Law, IIT, Kharagpur

Abstract

This paper systematically introduces and analyses the concepts of Direct Selling, Multi-level Marketing and Illegal Ponzi Pyramid schemes. Multi-level marketing is a multi-million dollar global industry. There exists a thin line differentiating a valid Multi-level Marketing scheme and bogus Pyramid money circulation scheme. The Indian courts reading Multi-level Marketing schemes as synonymous with Money Circulation schemes defined in Prize Chits and Money Circulation (Prohibition) 1978 Act have held all Pyramid and Multilevel Marketing schemes illegal. The paper elucidates the position of law in India, as distinct from United States, and argues for the legalisation of Multi-level Marketing schemes.

Keywords

Direct Selling, Multi-level Marketing, Ponzi Pyramid Schemes, Money Circulation, Amway