Direct Selling in North Carolina
North Carolina's pyramid statute makes no exception for multilevel companies. That shapes how any compensation plan offered here should be read. The state had 11,197,968 residents in the Census Vintage 2025 estimates. This page covers that law, the two head offices in Plondo's directory, small business and job figures, and the UNC System's 256,530 students.
No exemption for multilevel plans in G.S. 14-291.2
North Carolina deals with pyramid schemes in its criminal code. The statute is G.S. 14-291.2, in Chapter 14, Article 37. It bans establishing, operating, participating in or promoting a pyramid distribution plan.
The law defines a plan by what a participant pays for. A person hands over valuable consideration for the chance to be paid for bringing in other participants. The statute does not set aside multilevel or direct selling companies. It applies whether or not the opportunity comes with the purchase of merchandise.
Penalties depend on the role. Operating a plan is a Class H felony. Participating in or promoting one is a Class 2 misdemeanor. Contracts built on a plan are void and unenforceable. The reach extends to the people who recruit, not only to the company at the top.
Any company that signs up representatives in North Carolina has to read its compensation plan against this definition. That includes the two head offices in Plondo's directory and companies based in other states. This is general information, not legal advice.
Chapter 14, Article 37 in brief
Pyramid and chain schemes prohibited[1]
The statute bans establishing, operating, participating in or promoting a pyramid distribution plan. In such a plan a participant pays valuable consideration for the chance to receive compensation for bringing in other participants. Operating a plan is a Class H felony. Participating in or promoting a plan is a Class 2 misdemeanor. Contracts built on such a plan are void and unenforceable. This summary is general information and not legal advice.
This is general information, not legal advice.
ACN in Charlotte, Market America in Greensboro
Plondo's directory lists two direct selling head offices in North Carolina. ACN is based in Charlotte. Market America is based in Greensboro. The list below is drawn from the live directory and changes as companies are added.
Services from one city, goods from the other
ACN's directory category covers telecommunications, energy and essential home and business services. Its representatives offer services that a household or a business already pays for.
Market America's listing combines direct selling with product brokerage and e-commerce. Its head office is in Greensboro, about a state away in kind from ACN's Charlotte services model, though both sit in the same state.
Both head offices work under the same statute described above. Neither is exempt from it by being a direct selling company.
1.1 million small firms, 1.8 million workers at them
The SBA Office of Advocacy counts 1.1 million small businesses in North Carolina in its 2025 profile. They make up 99.6 percent of the state's businesses. They employ 1.8 million people, or 44.2 percent of the state's employees.
Independent representatives work as their own small operations. In North Carolina they join a field where nearly every firm is small and owner run.
Openings and closings both run high. Between March 2023 and March 2024, 38,748 establishments opened and 30,680 closed. The net gain was 8,068. Small businesses added a net 52,820 jobs over the same stretch.
Some small firms here sell well beyond the state line. The SBA profile identifies 10,986 firms that exported goods from North Carolina in 2023.
268,000 openings in October 2025
The Bureau of Labor Statistics reported 268,000 job openings in North Carolina in October 2025. That was up from 254,000 in September.
Openings sit beside steady losses. From December 2024 to March 2025, gross job losses from closing and contracting private sector establishments came to 230,646.
Together the counts describe a state where people move between employers often. A company recruiting here talks to people with other options. Its offer has to stand on the product or service, not on promises about pay.
256,530 students on 17 campuses
The University of North Carolina System enrolled 256,530 students in fall 2025. They attend 17 institutions. NC State was the largest, with 39,259 students after a 2.1% jump.
Students are a large share of the state's young adults, and some will hear direct selling pitches. The statute's test does not change on a campus. It looks at whether a person pays to join for the chance to be paid for bringing in others.
Counts this page relies on
- State population, Census Vintage 2025
- 11,197,968[2]
- Small businesses in North Carolina (2025 SBA profile)
- 1.1 million[3]
- Share of North Carolina businesses that are small businesses
- 99.6 percent[3]
- Small business employees in North Carolina
- 1.8 million[3]
- Share of North Carolina employees working at small businesses
- 44.2 percent[3]
- Establishments opened, March 2023 to March 2024
- 38,748[3]
- Net job increase at small businesses, March 2023 to March 2024
- 52,820[3]
- Value of goods exported by identified North Carolina firms, 2023
- $39.2 billion[3]
- Job openings in North Carolina, October 2025
- 268,000[4]
- Gross private sector job losses from closing and contracting establishments, Dec 2024 to Mar 2025
- 230,646[4]
- UNC System enrollment, fall 2025
- 256,530[5]
- Institutions in the UNC System
- 17[5]
- Largest UNC System school by enrollment, fall 2025 (NC State)
- 39,259[6]
Leaving a North Carolina company without telling anyone
Team leaders at ACN, Market America or a company based outside North Carolina can talk with Plondo about a move before their upline or current company hears of it. The placement service is free and confidential. Plondo charges no placement fee. Leaders in Charlotte, Greensboro and across the state can compare companies and read their compensation plans before deciding anything.
Apply confidentiallySoftware that holds up under G.S. 14-291.2
A company selling into North Carolina needs a commission engine that pays on product and service sales and shows that in every report, since the state statute has no direct selling exemption. Its back office should keep clean enrollment and order records. Replicated sites should lead with what is sold. AI employees can answer representative questions at any hour.
See Plondo direct selling softwareFrequently asked questions
Does North Carolina exempt direct selling companies from its pyramid statute?
No. G.S. 14-291.2 has no exemption for multilevel or direct selling companies. It applies whether or not the opportunity comes with merchandise. This is general information, not legal advice.
Which direct selling companies are headquartered in North Carolina?
Plondo's directory lists two. ACN is based in Charlotte, and Market America is based in Greensboro.
What are the penalties under G.S. 14-291.2?
Operating a pyramid distribution plan is a Class H felony. Participating in or promoting one is a Class 2 misdemeanor. Contracts built on such a plan are void and unenforceable.
Who enforces the statute?
The North Carolina Attorney General and district attorneys enforce it through the superior court. Courts can also enjoin a scheme as an unfair or deceptive trade practice.
How many small businesses does North Carolina have?
The SBA Office of Advocacy counts 1.1 million in its 2025 profile. They are 99.6 percent of the state's businesses and employ 44.2 percent of its employees.
Does Plondo charge North Carolina team leaders for placement?
No. The placement service is free and confidential, and Plondo charges no placement fee.
Sources
- North Carolina General Assembly, G.S. 14-291.2 Open source
- U.S. Census Bureau, Vintage 2025 population estimates Open source
- SBA Office of Advocacy, North Carolina 2025 Small Business Profile Open source
- U.S. Bureau of Labor Statistics, Southeast Information Office: North Carolina Open source
- University of North Carolina System, home page Open source
- Queen City News, UNC System reaches record enrollment with all but one school seeing gains Open source