Regulation & law
Inventory loading
Buying product to qualify for rank or bonuses rather than to sell it.
Inventory loading happens when participants buy product to hit volume thresholds at month end, then store or discard it. It inflates volume, and income, without any customer.
The 70% rule and customer-sales requirements in some plans exist to limit it. The FTC has cited inventory loading in several enforcement actions as evidence that a plan rewards recruitment over retail sales.