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Maryland Securities Division

Notice to Prospective Maryland Participants in Multilevel Distribution Companies

Under Maryland law, no state agency reviews or approves multilevel distribution company programs that are sold in the State of Maryland.

Maryland law does require, however, that multilevel distribution companies programs comply with the requirements of the Maryland Multilevel Distribution Companies Law, Title 14, Subtitle 3, Business Regulation Article, Annotated Code of Maryland (1992 Repl. Vol.).

If you are required to purchase products or services in order to participate in a multilevel distribution program, this law requires the company to repurchase from you (at 90% of your original purchase price) all resalable goods within 3 months of the date you first received those goods.

The law also states that you may cancel your contract with a multilevel distribution company for any reason within 3 months of your receipt of merchandise first ordered.

Maryland law also provides that no income representations or projections may be made to you by the company unless the representations or projections accurately reflect the average earnings of a substantial number of participants under circumstances similar to yours.

If you become a participant and then have a dispute with the company, you may need to retain a lawyer to handle your case. Although the Maryland Attorney General's Office or the county state's attorneys may go to court to try to stop violations of the Maryland Multilevel Distribution Companies Law, only a judge has the authority to order that money be returned to you by the company in cases of violation of the law.

 
 

Attorney General of Maryland 1 (888) 743-0023 toll-free / TDD: (410) 576-6372
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