Ans:
No, multi-level marketing is not unlawful. However, pyramid schemes are illegal, where the organisation's high-level members profit by duping the lower-level recruits. A company operates a pyramid scheme if it generates revenue from recruiting new employees rather than selling goods to the general public. It is a legitimate MLM if the business generates revenue from selling things to customers.
It is difficult to tell whether a specific MLM organisation fits the requirements to be considered a pyramid scheme.