The first recognized MLM businesses in the United States were the California Vitamin Company (founded in the 1920s and later renamed Nutrilite in 1939), and the California Perfume Company (incorporated in 1909 and later renamed Avon Products in 1932).

In 1979, a landmark ruling involving Amway helped to legitimize the multi-level marketing industry. The FTC found that Amway was not operating as a pyramid scheme according to the strict statutory definition of one, but did order the company to stop deceiving its distributors about their income potential.