Especially in economically strained times, many people have a strong desire to solve financial problems or achieve an increase in income through a side job. For decades, this opportunity has also been provided by multi-level marketing companies, many of which later turned out to be pyramid or Ponzi schemes. As a result, multi-level marketing companies are often generally referred to as Ponzi schemes in public discourse. This paper will first discuss how a multi-level marketing company is structured. It will then briefly outline the variants of Ponzi and pyramid schemes. Following that, the question will be examined under what conditions the multi-level marketing system is legally permissible under competition law. Subsequently, the need for specific regulations for multi-level marketing companies will be addressed. Finally, liability issues that may arise in connection with multi-level marketing companies will be discussed.