Multi-level marketing schemes (MLMs) is one of the fastest growing types of business in the world. Especially in China, with the development of e-commerce and social network application, increasingly people start doing business for MLM companies in social network platform. However, there are few academic articles have been written about the ethicality of MLMs on social media application in China. What surprising is, even in China, the ethical issue of MLMs on Wechat is controversial. Among the ordinary person, MLMs sometimes have been accused of being pyramid schemes, which is illegal in China. Besides, many people complain that some of their friends sell products on Wechat, which make them uncomfortable and sometimes be pressured to buy it. This research explores the nature of MLMs and the ethical issues of it. It argues that MLMs on Wechat in China posed some unique ethical issues and attempts to search for the solutions for them.