Myth: A network marketing company can require distributors to purchase a sales kit provided that it is offered to the distributor at company cost.
Truth: Approximately 10 state anti-pyramid laws permit a required distributor kit purchase at company cost, a few even allow a required sales material as long as the amount does not exceed a specified sum whether or not it’s at company cost. 40+ states do not have a permitted sales kit purchase at any price, nor does such an exception exist under the postal, business opportunity and securities laws (state or federal). There are a number of ways to have the new distributor almost always become a purchaser of a sales kit, but requiring its purchase isn’t one of them.
