I think somebody needs to take some economics coarses before painting with such a brush. ...and I am not a fan of the MLM model, but that does not make it unethical.
Spend some time in corporate America and see how capitalism functions at its most basic level. Essentially every sales person personally benefits when they are successful. Owners benefit when their employees are incentivized to find success. ...and yes, unethical sales people make outrageous claims to make a sale. I have seen it from many marketing models. Do you have a problem with commissioned sales? I suppose what your really saying is that you don't like sales people who are heavily incentivized to make a sale. Me either, but as long as consumers are at liberty and willing to part with their money I will fight for their right to do so. ...and yes, I have had family relationships strained by both the MLM model and the commissioned sales model.
If you want the government to step in then ask Obama to pass another meddling law with unintended consequences. People have a right to make ethical choices... even when you don't like them.