According to the statutory definition (Article 8 of the Fair Trade Act), “paying a certain cost” is one of the constituent elements of multi-level marketing. However, if a similar scheme accepts participants “without paying a certain cost,” should this kind of marketing program be regulated as multi-level marketing in the same way as those so defined in the Fair Trade Act? This artic1e will inquire into this issue, and explore and compare legal definitions in various foreign countries. Furthermore, the issue will be analyzed in light of the practical legal disputes and public policy considerations. In order to understand the difference that this issue would make in the real world, this article further conducts an empirical analysis that is based on the data collected in a survey on multi-level marketing operations in Taiwan by the Fair Trade Commission in 2003. The results of the study show that “paying a certain cost” has no significant effect on the performance of multi-level marketing businesses. It indicates that deleting the element from the statutory definition would not have a strong impact on the operation of multilevel marketing. Omitting this element can also eliminate the legal disputes on statutory interpretation and fit in with the tide of most foreign legislation and the draft of the “Multilevel Marketing Act.” This article will in addition suggest administrative measures that are ancillary to the deletion of this element.