So no more wholesalers? No more commission for sales reps selling through partners?

If that were the law, then the MLM's simple workaround would be to pay you a recruiting fee based on the success of the people you recruit. If the people you recruit sell a lot, you get a bigger fee because you did a better job at recruiting.

I imagine it'll be tough to craft a law to target MLMs because if it's too broad it'll hit many kinds of legitimate business and if too narrow they'll creatively bypass the rules.

The IRS deals with people trying to exploit loopholes like that all the time. The law isn't a programming language.

The companies that make routers sell their products to us this way, through VARs.

Reselling isn't nefarious; network marketing is.