Yes, multilevel marketing is legal, so long as the program does not pay commission solely for recruiting new members, a practice known as pyramiding.

Generally, legitimate network marketing companies are well received throughout the United States. More and more, federal and state governments offer assistance and guidance to the MLM industry. The IRS has released several special publications, as well as adopted specific regulations, recognizing multilevel marketing as a legitimate profession. Several states have also adopted legislation for network marketing companies which put in place objective standards for them to follow.

Multilevel marketing has been around for a very long time. One of the oldest and most successful companies that uses multilevel marketing is Tupperware.