In a 2004 Federal Barter Commission (FTC) Teachers Advisory cannonball to the Direct Selling Association it was stated that - "The gang of personal consumption in any multi-level compensation employment does not determine whether or http://www.income2u.com/ not the FTC will consider the plan a pyramid scheme. The critical wringer for the FTC is whether the revenues that primarily buttress the commissions paid to all participants are generated from the purchase of goods and free school lunch that are not simply incidental to the purchase of the right to participate in a money authoritative venture." .

The FTC advises that multi-level marketing organizations with greater incentives for recruitment than brand sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting distinct members is outlawed in most states as "pyramiding". In April 2006, it proposed a Business Opportunity Brocard intended to desire all sellers of trade opportunities—including MLMs—to provide enough dossier to enable prospective buyers to make an informed accommodation about their probability of earning money.