Absolutely -- it's that promise of financial freedom and products that "basically sell themselves" except you're stuck with the inventory because 10 people are working on the same friends to get them to buy Younique mascara.
My wife did Mary Kay and they had a clause regarding buy back: They would pay 90% of what you paid to buy it and you'd be blacklisted - you could never by a MK consultant again.
So even if an MLM has that type of program they probably make sure people know it'd be bad for them to exercise it.
> they probably make sure people know it'd be bad for them to exercise it.
The example you cite seems to undermine this claim. If you're doing terribly selling Mary Kay products, you get 90% of your money back and... you can't sell Mary Kay products anymore. Which you couldn't do in the first place; why would you care about being blacklisted?
Most have penalties for repurchasing such as restocking and delivery fees that mean they still make good
That is before going into the psychological pressure applied to distributors to not "fail" by asking for a restock, and the incentive schemes that mean many distributors continue stocking up on unsold goods to maintain commission and reward levels
The doc seems specific to Amway. Perhaps this clause:
> 72. Amway, the Direct Distributor or the sponsoring distributor will buy back any unused marketable products from a distributor whose inventory is not moving or who wishes to leave the business. (RX 331, p. 17B to 18B; CX 847; CX 1076) The buyback rule has been in existence since Amway started. (CX 1041 J) Amway enforces the buyback rule. (CX 847; Brown, Tr. 501213; Bortnem, Tr. 686, 690; Soukup, Tr. 913)
In any case I would not be surprised in the least if your upstream told you to pound sand if you tried to return unsold product, regardless of legal precedent. You have to decide if it is worth your time and money to sue them.
