It does if they are selling securities (either as their main business or securities for their business).
The FTC does regular MLMs.
> Herbalife and Lularoe operate in broad daylight.
Herbalife was restructured to settle a pyramid-scheme lawsuit by the FTC. [0] And subsequently also settled a lawsuit from the SEC. [1]
LulaRoe has managed not to be sued by the FTC, but that seems mostly to be because that process is complaint driven and the complaints have instead either gone to state regulators or directly into private lawsuits; LulaRoe has a pile of direct- and class-action lawsuits from distributors, settled a State of Washington lawsuit for $4.75 million, has been sued by it's main supplier, etc.
