Multi-Level Marketing Companies are Inherently Dishonest
They are designed for someone to make money from other's likely failure. The vast majority of people who get involved in an MLM lose money. When entering such a business you have to pay some money. Whether you are successful or not, someone gets that money. Someone in the organization stands to make money either way, causing at least some of their incentive to be based on whether or not they can sell you enough on the idea to give up the money, not necessarily for ongoing success.
Greed becomes the primary product to sell. It almost doesn't matter what product is being sold, because quickly the primary product becomes all the money you can get by getting others to sign up. A legitimate business sells a product that benefits society, not one that hurts most people it touches.
It's not a sustainable business model because it's essentially a ponzi scheme. It only survives by suckering new people into the scheme. At least in communism, someone is try to manage supply and demand; with an MLM, nobody cares. The loosers are the distributors that lose money when the market is saturated.