The new Pyramid Selling

It takes all kinds to make the world. Yet, the variations are sometimes, just too astonishing for me to comprehend. Take my present job. Instead of operating like an MNC consulting firm, we have become a pyramid-based agency. We are paying Ms C an overriding fee, in addition to her company's commission - and she doesn't even need to lift her pinky for that.
Pyramid selling which is illegal here markets toiletries, health supplements, household cleaning or beauty products. Question : If it's illegal, why is it am I having this problem?
I guess, when in the corporate world, your disguise must be pretty good. You will go under a heavy cloak of agreements or memorandums of understanding. We don't always find out when we're being fleeced until it's too late - but in this case, we've known for a long time, and the HEAD is not doing anything about it. If I take the cruel approach, I'd say, either the flesh or material gain is involved. We may be a compassionate society, but this is way above any corporate directive on the lowest scale!
So, I'll be busy thinking about how to diplomatically terminate this stupidity, because as much as we have to do charity, we are not a charitable organisation. Even Charities are answerable to their balance sheets.