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Is this type of business legal?

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6321255

Junior Member
What is the name of your state (only U.S. law)? - California but it's an international opportunity.

Hey there,

I've been scouring the web trying to find some legal information about whether the activities of a company are in fact legal.

To avoid any possible conflicts of interest or anythign that would make the question unanswerable I'm going to call the company XYZ. If you would like a link to the site, or like to know the company name I will reply so but I just want to see if the concept itself is legal in nature.

XYZ is an only membership site whereby an individual pays a recurring $25 membership fee for access to econtent which include audio tapes, videos, and training materials for a variety of topics including the microsoft office products too. But they've incorporated a matrix-style compensation plan and how it works is that you pay your membership fee directly to your upline. And when you refer someone, they pay you $25 directly too. And they have a reverse-2up system where by the 2nd and 4th referal one makes is sent directly to the upline to "qualify" to have all additional signups under the referer.

See to me, my question is, can you pay the mail-delivery man instead of paying the newspaper company? Because one of the major advertising proponets of the company is that they don't touch any of the money. It's all direct member to member transactions within the back office.

I searched the web and couldn't find anything negative or 'illegal' about it and so I started it and started spreading the word, but I thought i'd consult someone who has experience in business law vs all the websites who have their own agenda. I have several people around the world in China and Australia and German who are interested but want to know if it is legal in their country as it is a digital product. As far as I can tell, the subscription isn't illegal, as you are paying for a service (i.e access to the site) but its how the money is transferred that I just want to double check.

Again, I appreciate anything you can say on this matter and if you would like the company website or info to learn more about it or to get a better understanding, please let me know.

Thanks
 



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