Look into the Legal Status of Multilevel Marketing in India

Corporate Lawyer in Kolkata

Business ideas keep on involving relatively fast. You may get many business ideas that were popular as well as successful in the past but they are of no significance at present. Multilevel marketing has been a popular business idea that was very popular among people. These ideas bring unprecedented advantages to those who involve themselves in those business ideas. The expert corporate lawyers in Kolkata believe that these ideas are not safe and that is why they are often risky.

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Are These Multilevel Practices Legal In India? 

In terms of legal practices, multilevel marketing is not illegal unless and until the owners indulge themselves in any illegal practice. These illegal practices are often undertaken by businesses that wish to get more monetary advantages. However, ponzi schemes are always illegal where the business owners sell some products to the customers just to confirm the investments. The experts agree that the concept of Multilevel Marketing in this form is similar to network marketing and it is also illegal in India. The most considerable reason for these practices becoming illegal lies in the fact it does not work on the right practices of money circulation. 

Here, the business owners focus on making more money by introducing the level of distributors and sellers of their services or products. These practices, once recognized, become illegal as it involves unauthentic methods. The scheme involves a pyramid where the money is distributed in an unequal manner. Simply, it often results in fraudulent activities that damage the sanctity and trustworthiness of the whole marketing scheme. In India, there are numerous incidents where these multilevel marketing practices failed and that is why they were declared illegal and scams. 

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How to identify fraud in multilevel marketing? 

Here are a few things that you must consider to declare whether a particular multilevel marketing practice is legal or illegal: 
  • Find if the benefits are legitimate and genuine
  • Check to see if it includes any illegal or bigger investments
  • Look if the procedure involves any training for the investors/participants
  • Check if the schemes promise to make you billionaires overnight. Such promises are mere traps! 
  • Check if the business brings you financial advantages once at a time or at multiple levels.
If you are serious about gettng out if a business initiative of this kind is legal or not, you must be very particular about checking them thoroughly. You can speak to lawyer in Kolkata who have in-depth knowledge in this domain. You can decide things well before you get involved in such a marketing initiative.

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Location: Kolkata, West Bengal, India

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