What I don't understand is how does MLM companies manage to pay their members commission (legally), I paste the section of the CPA that concerns me:
The CPA, Chapter 2 Part E – Referral selling:
38.
(1) A person must not promote, offer, supply, agree to supply or induce a consumer to accept any goods or services on the representation that the consumer will receive a rebate, commission or other benefit if-
(a) the consumer subsequently-
(i) gives the supplier the names of customers; or
(ii) otherwise assists the supplier to supply goods or services to other consumers; and
(b) that rebate, commission or other benefit is contingent upon an event occurring after the consumer agrees to the transaction.
How do MLMs get passed this law?
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