MLM Law in 50 States
Every state has adopted laws regulating MLM companies. Visit this page to look up MLM law in your state.
read more »State Statutes
Arkansas
MLM Law: Arkansas Business and Commercial Law
Title 4. Business and Commercial Law.
Subtitle 7. Consumer Protection.
Chapter 88. Deceptive Trade Practices.
Subchapter 1. General Provisions.
§ 4-88-109. Pyramiding devices.
§ 4-88-109. Pyramiding devices.
(a) Every person who contrives, prepares, sets up, proposes, or operates any pyramiding device shall be guilty of an unlawful practice.
(b)(1) As used in this section, a pyramiding device shall mean any scheme whereby a participant pays valuable consideration for the chance to receive compensation primarily from introducing one (1) or more additional persons into participation in the scheme or for the chance to receive compensation when a person introduced by the participant introduces a new participant.
(2) "Compensation", as used in this section, does not mean or include payment based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme.
Other Pages of Interest
MLM Law Library
MLM law in 50 states, IRS Publication 911, the MLM Textbook, as well as a comprehensive index of articles on the direct selling industry.
read more »MLM Article Directory
Browse hundreds of articles on distributor education, MLM company ownership, the legal environment, and so much more. View some of our most popular articles on the FTC, Vemma, Herbalife, and Burnlounge.
read more »Key Pages to Visit While You're Here
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