MLM Attorney explains what is a legal MLM; TVI Express is not

EmJay07, who has a blog of his own that criticizes my blogs (usually without basis, but that would be an opinion), cited. A Mr. Nehra, one of the few attorneys what specialized in MLM, for some reference to something about pay commission in certain cases are legal, and claim that somehow proves he knows MLM law.

What he did not realize is Mr. Nehra actually published an article on what constitutes a legal MLM (at least in the US of A and Canada), which I will quote below. And TVI Express does NOT fit the criteria listed. Therefore, TVI Express cannot be legal in the US of A or Canada, and very likely, in my opinion, not legal in the rest of the world.



Mr. Nehra wrote:

"...[MLM]  needs to look something like this, or the MLM operation will not be allowed to continue long-term in the United States or Canada.

A.The company brings a product or service to the marketplace that:
 1.is retailable
 2.is being retailed, and
 3.does not include a right to bring more participants to the company. A service that contains the right to bring customers to the company, like a shopping mall, can qualify, but not if it also contains the right to bring more income opportunity seekers (legally, “participants”) to the company. Multilevel income opportunities CANNOT be sold in the United States or Canada.

B.The product or service reaches the end user through efforts of direct sales representatives (independent contractors), rather than through traditional retail establishments or other channel of distribution choices like mail order or telemarketing. This channel definition is driven, not by any e-commerce techniques, but rather by the payment of money to an independent contractor for producing a result. Another characteristic of this channel is a lack of employees (involved in selling) to whom W-2s are issued and the presence of independent contractors to whom 1099s are issued.

C.The company’s compensation plan
 1.is designed to reward representatives for the sales of the product or service they are involved in, and
 2.includes an incentive and reward for the representative to be the “new representative finder” (legally, another “participant”) in the form of payment to a representative who introduces an additional representative to the company, BASED ON the sales volume of the second representative.

-- cited from http://mlmatty.com/09/abc.php

How many of these criteria does TVI Express fit?

A1: maybe, if you call selling travel a service, but who's doing the actual selling?
A2: yes, travel is being retailed, but subject to A1.
A3: BIG PROBLEM. TVI Express REQUIRES you to recruit two more people. It's not merely a right, it is a REQUIREMENT. Says so in TVI Express FAQ. That is a big NO-NO.

B: no, there is no outside customers at all. All sales are from TVI Express to member, not from member to outside.No member sell anything to outside people (recruiting is NOT selling)

C1: no, TVI Express compensation plan rewards recruiting over sales. Out of four parts of the compensation package, ALL FOUR emphasizes recruiting.
C2: no, TVI Express compensation plan rewards recruiting over sales. There is a minor bit about "power pool" and "residual income", which *may* be legal, but "board payout" and "incentives" would definitely be NOT legal.

Thus, according to Mr. Nehra's definition of a legal MLM, TVI Express does not fit, having failed A, B, AND C, TVI Express cannot be legal (in US or Canada). 
 
Consult attorneys in your jurisdiction, who specialize in MLM law, for expert opinions.  Doubt he'll be as good as Mr. Nehra though. When he says it's illegal, it probably is. And I didn't bring him up, EmJay07 did.  

Personal observation: EmJay07 seems to enjoy citing sources that defeat his own arguments.