On the Ethicality of Internal Consumption in Multilevel Marketing

This paper examines the ethicality of internal consumption in multilevel marketing. Internal consumption occurs when distributors in a multilevel marketing organization purchase and personally consume the products and services of their multilevel marketing firm. The paper documents that internal consumption is a common, widespread phenomenon found in all types of firms and that criticism of this aspect of multilevel marketing as being unethical and fraudulent is misplaced.