Shopify · Shopify Acceptable Use Policy

Multi-Level Marketing (MLM) Prohibition

Medium severity
Share 𝕏 Share in Share

What it is

You may not use the Shopify Services to operate a multi-level marketing or pyramid scheme business model.

Why it matters

Legitimate direct sales businesses that use tiered commission structures may be categorized as MLM and face account termination, requiring merchants to carefully assess whether their compensation structure could be characterized as multi-level marketing.

Consumer impact

Shopify's AUP primarily affects merchants who use the platform to run their businesses, as it defines the full scope of what can and cannot be sold — with violations potentially resulting in immediate store termination and loss of access to funds held in Shopify Payments. Consumers shopping on Shopify-powered stores benefit indirectly from these rules, which prohibit counterfeit goods, fraudulent schemes, and dangerous unregulated products. You can review the full list of prohibited and restricted product categories at shopify.com/legal/aup before building your store to ensure compliance.

Applicable agencies

  • FTC
    The FTC has primary federal enforcement authority over pyramid schemes and deceptive MLM income representations under FTC Act Section 5 and has actively pursued major enforcement actions in this area.
    File a complaint →
  • State AG
    State Attorneys General enforce state pyramid scheme statutes independently of the FTC and have pursued criminal and civil actions against MLM operators.
    File a complaint →

Provision details

Document information
Document
Shopify Acceptable Use Policy
Entity
Shopify
Document last updated
March 24, 2026
Tracking information
First tracked
March 15, 2026
Last verified
April 4, 2026
Record ID
CA-P-002240
Document ID
CA-D-00124
Evidence Provenance
Source URL
Wayback Machine
SHA-256
c3d037196ffbb1471c40eb696d0527749e9581d33970cdd9620dc96a8e8dfbdb
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: Shopify | Document: Shopify Acceptable Use Policy | Record: CA-P-002240
Captured: 2026-03-15 12:02:55 UTC | SHA-256: c3d037196ffbb147…
URL: https://conductatlas.com/platform/shopify/shopify-acceptable-use-policy/multi-level-marketing-mlm-prohibition/
Accessed: April 6, 2026
Classification
Severity
Medium
Categories

Other provisions in this document