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Many people are still now aware of pyramid schemes and why are pyramid scheme illegal in almost every country including India, the US, the UK, Australia, and many more countries. So, In this article, I will be sharing what is pyramid schemes and are whether pyramid schemes illegal in India also complete a list of countries where pyramid schemes are illegal.


why are pyramid scheme illegal list of countries where pyramid schemes illegal
why are pyramid scheme illegal list of countries where pyramid schemes illegal


In multi-level marketing not all companies are legitimate some of them run their whole business based on pyramid schemes which are illegal. Before let me tell you pyramid scheme means in MLM.


What is Pyramid Scheme in simple words?


In MLM companies you need to invest some money to become a distributor by giving them some money. But, Now, all of the MLM companies won’t ask for money from you directly.


In any company, If you pay some money then you will get some products in return and the company gets benefits from the products sold.


But in Pyramid Scheme, there is no product involved you need to pay money to become a distributor and need to add more distributer, and so on.


The difference between an MLM and a pyramid scheme is that Pyramid schemes work in a similar way but there are no products here. People need to invest money and in return, there don't get any products.


Now, you need to add at least three members to get a certain commission let's say 10% on the amount of investment. For next-level members then you will get 2% from the investment.


Pyramid schemes will waste your money and time because in pyramid schemes members need to add new members to gain commission and profit without sales of products.


Also, learn about network marketing tips for beginners



Is pyramid scheme legal in India?


No, In India as per the government's new regulation on MLM industries it MLM pyramid scheme is illegal in India.


Under the Direct Selling Guidelines, 2016 and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, such network marketing schemes are illegal in India.


So Now, you understood why are pyramid schemes illegal.


List of countries where pyramid schemes illegal



In Dec 2021, the Indian government started to take strict action against MLM companies promoting pyramid schemes which is illegal. Not just in India in many countries pyramid scheme is illegal.


List of countries where pyramid schemes are illegal.


  1. Albania
  2. Australia
  3. Austria
  4. Belgium
  5. Bahrain
  6. Bangladesh
  7. Brazil
  8. Canada
  9. China
  10. Colombia
  11. Denmark
  12. The Dominican Republic
  13. Estonia
  14. Finland
  15. France
  16. Germany
  17. Hong Kong
  18. Hungary
  19. Iceland
  20. India
  21. Indonesia
  22. Iran
  23. The Republic of Ireland
  24. Italy
  25. Japan
  26. Malaysia
  27. Maldives
  28. Mexico
  29. Nepal
  30. Netherlands
  31. New Zealand
  32. Norway
  33. Oman
  34. Peru
  35. Philippines
  36. Poland
  37. Portugal
  38. Romania
  39. Russian Federation
  40. Serbia
  41. South Africa
  42. Singapore
  43. Spain
  44. Sri Lanka
  45. Sweden
  46. Switzerland
  47. Taiwan
  48. Thailand
  49. Turkey
  50. Ukraine
  51. United Kingdom
  52. United States

Source: Wikipedia


You can look your company among top network marketing companies in India


Are pyramid schemes illegal in Germany?


Yes, In Germany pyramid schemes are illegal.


Are pyramid schemes illegal in Canada and US?


Yes, as per US federal in the US and also in Canada pyramid schemes are illegal.


Is pyramid scheme legal in the Philippines?


As per Wikipedia, No pyramid scheme is illegal in the Philippines.


Above is a list of countries where pyramid schemes are illegal.


Now, time for a conclusion.


In conclusion, Why are Pyramid Scheme illegal Countries List


After reading this article you may get your answer to why are pyramid schemes illegal and also a list of countries where pyramid schemes are illegal.


See you in new valuable article.


Also Read:

role of upline in Network marketing.

10 Benefits of network marketing.

Why are Pyramid Scheme illegal List of Countries

Many people are still now aware of pyramid schemes and why are pyramid scheme illegal in almost every country including India, the US, the UK, Australia, and many more countries. So, In this article, I will be sharing what is pyramid schemes and are whether pyramid schemes illegal in India also complete a list of countries where pyramid schemes are illegal.


why are pyramid scheme illegal list of countries where pyramid schemes illegal
why are pyramid scheme illegal list of countries where pyramid schemes illegal


In multi-level marketing not all companies are legitimate some of them run their whole business based on pyramid schemes which are illegal. Before let me tell you pyramid scheme means in MLM.


What is Pyramid Scheme in simple words?


In MLM companies you need to invest some money to become a distributor by giving them some money. But, Now, all of the MLM companies won’t ask for money from you directly.


In any company, If you pay some money then you will get some products in return and the company gets benefits from the products sold.


But in Pyramid Scheme, there is no product involved you need to pay money to become a distributor and need to add more distributer, and so on.


The difference between an MLM and a pyramid scheme is that Pyramid schemes work in a similar way but there are no products here. People need to invest money and in return, there don't get any products.


Now, you need to add at least three members to get a certain commission let's say 10% on the amount of investment. For next-level members then you will get 2% from the investment.


Pyramid schemes will waste your money and time because in pyramid schemes members need to add new members to gain commission and profit without sales of products.


Also, learn about network marketing tips for beginners



Is pyramid scheme legal in India?


No, In India as per the government's new regulation on MLM industries it MLM pyramid scheme is illegal in India.


Under the Direct Selling Guidelines, 2016 and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, such network marketing schemes are illegal in India.


So Now, you understood why are pyramid schemes illegal.


List of countries where pyramid schemes illegal



In Dec 2021, the Indian government started to take strict action against MLM companies promoting pyramid schemes which is illegal. Not just in India in many countries pyramid scheme is illegal.


List of countries where pyramid schemes are illegal.


  1. Albania
  2. Australia
  3. Austria
  4. Belgium
  5. Bahrain
  6. Bangladesh
  7. Brazil
  8. Canada
  9. China
  10. Colombia
  11. Denmark
  12. The Dominican Republic
  13. Estonia
  14. Finland
  15. France
  16. Germany
  17. Hong Kong
  18. Hungary
  19. Iceland
  20. India
  21. Indonesia
  22. Iran
  23. The Republic of Ireland
  24. Italy
  25. Japan
  26. Malaysia
  27. Maldives
  28. Mexico
  29. Nepal
  30. Netherlands
  31. New Zealand
  32. Norway
  33. Oman
  34. Peru
  35. Philippines
  36. Poland
  37. Portugal
  38. Romania
  39. Russian Federation
  40. Serbia
  41. South Africa
  42. Singapore
  43. Spain
  44. Sri Lanka
  45. Sweden
  46. Switzerland
  47. Taiwan
  48. Thailand
  49. Turkey
  50. Ukraine
  51. United Kingdom
  52. United States

Source: Wikipedia


You can look your company among top network marketing companies in India


Are pyramid schemes illegal in Germany?


Yes, In Germany pyramid schemes are illegal.


Are pyramid schemes illegal in Canada and US?


Yes, as per US federal in the US and also in Canada pyramid schemes are illegal.


Is pyramid scheme legal in the Philippines?


As per Wikipedia, No pyramid scheme is illegal in the Philippines.


Above is a list of countries where pyramid schemes are illegal.


Now, time for a conclusion.


In conclusion, Why are Pyramid Scheme illegal Countries List


After reading this article you may get your answer to why are pyramid schemes illegal and also a list of countries where pyramid schemes are illegal.


See you in new valuable article.


Also Read:

role of upline in Network marketing.

10 Benefits of network marketing.


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