Ethical Issues Connected with Multi-Level Marketing Schemes

Multi-level marketing (MLM) schemes are one of the fastest growing types of business. However, little has been written about the ethics of MLMs. This oversight is somewhat surprising, especially because some prominent MLMs have been accused of being pyramid schemes. Pyramid schemes were the number o...

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Bibliographic Details
Main Author: Koehn, Daryl (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2001
In: Journal of business ethics
Year: 2001, Volume: 29, Issue: 1, Pages: 153-160
Further subjects:B Ethical Issue
B Market Scheme
B Pyramid
B Economic Growth
B Marketing
Online Access: Volltext (JSTOR)
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Summary:Multi-level marketing (MLM) schemes are one of the fastest growing types of business. However, little has been written about the ethics of MLMs. This oversight is somewhat surprising, especially because some prominent MLMs have been accused of being pyramid schemes. Pyramid schemes were the number one type of internet fraud in 1996, and the fourth most common form of internet fraud in 1997 (National Consumers League, 1997). This paper examines the nature of MLMs and their similarities with and differences from pyramid and endless chain schemes. The paper argues that MLMs pose some unique ethical issues, issues that are not easy to address or resolve.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1023/A:1006463430130