Is MLM Legal in Australia?

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Updated: May 2026 Oleksandr Honcharov, CEO at FlawlessMLM Yes, multi-level marketing is legal in Australia, but pyramid schemes are illegal under the Australian Competition and Consumer Act 2010. Is MLM legal in Australia? The answer depends on whether the company's income comes mainly from real product sales (legal) or from recruitment fees (illegal). MLM legality in Australia Legal framework — the Competition and Consumer Act 2010 explicitly bans pyramid selling schemes. Australian Competition and Consumer Commission (ACCC) — the regulator that enforces consumer protection laws against pyramid schemes. Legal MLM criteria — most revenue must come from product sales to retail customers, not from distributor recruitment fees. Direct Selling Association of Australia (DSAA) — industry body that certifies compliant direct selling companies. Major MLMs operating in Australia — Amway, Herbalife, Nutrimetics, Modere, and dozens of others operate legally. Recent enforcement — ACCC has taken action against several pyramid schemes, including Lyoness and Lifelogix. Definition: MLM is legal in Australia when it meets criteria under the Competition and Consumer Act 2010, which bans pyramid selling schemes but permits multi-level marketing companies whose income comes mainly from genuine product sales. The ACCC enforces these rules and shuts down non-compliant operators. Australia's pyramid scheme law is stricter than the U.S. equivalent. The ACCC has been more active than the FTC in shutting down disguised pyramids in recent years.

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