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.
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Peterson et al. (2007) studied this question.
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