Multi-level marketing rarely advertises itself as a lottery. It advertises flexibility. Bill drafts such as Delaware’s HB 162 try to drag the economics into daylight: written disclosures before money changes hands, plain “no guarantee of earnings” language, median and typical income figures, a cooling-off window, and buy-back rules for unsold stock.
Supporters point to Federal Trade Commission (FTC) research often cited in the debate — that the vast majority of participants in many MLM structures do not profit. Industry groups push back, arguing heavy disclosure and long cancellation windows would break the model. As of the reporting around that bill, the politics were still fluid; the consumer lesson is not.
If someone recruits you with lifestyle montages, ask for the written income disclosure the company actually uses in regulated markets. If the only numbers are cherry-picked leaders, you already know which story they prefer.
If something similar lands in your inbox, start at Get help. If the next pitch is “we can get the money back”, read Fake recovery first.
This article is for general information only. It is not legal or financial advice. Details change. If you have lost money, contact your bank or card issuer and use the routes on the help pages.