New EU consumer protection directive: what does it mean for MLMs?

The state of play in 2026

From an ethical standpoint, the industry remains divisive. Critics argue that the MLM model structurally favours those at the top; supporters emphasise entrepreneurial freedom, the low entry threshold and the global community. Both positions have elements backed by data; the whole truth, as usual, lies somewhere in between.

Details and figures

The network marketing industry consolidated further in 2026: the top 25 companies together generated more than 84 billion dollars in global turnover, while most companies ranked below the top 100 stagnated or declined. The industry's internal dynamics suggest that product quality alone is not enough to reach a leading position: a digital platform, compliance capacity and a global logistics chain are together a necessary condition.

"The 2026 industry turning point was not a single event, but the emergence of a new standard. The winners will be those who adapted first." - industry analyst

What does this mean for the market?

The data show that the average income of independent sellers rose in nominal terms, but in real terms, taking inflation into account, it typically declined. The top 1% continues to dominate the commission pyramid: they receive about 60% of the industry's total commission payouts. This concentration is not new historically, but it is becoming increasingly visible due to digital transparency.

The next 12 months

The tightening regulatory environment poses a challenge for many companies. The transposition of the EU's 2024 Direct Selling Directive has been in force in Hungary since September 2024, and the so-called 70% rule (namely that at least 70% of sellers' income must come from actual product sales) is now a legal obligation, not just a recommendation.