A fool and his money are easily parted. If those students didn't blow their tuition on MLM garbage, they'd have blown it on something else. I'm sure there's a kid somewhere who blew his tuition making ridiculous option trades based on something he read on r/wallstreetbets.
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.
Just because you're getting downvoted, doesn't mean you're wrong. Caveat emptor.
That said, the kids who make the options trades probably lose more than the ones who fall for the MLM scams...
I notice that most people who are deep into MLMs usually don't have any sales experience. If they had invested the same effort generating leads for a business at least they would learn sales skills they could use to create their own businesses. Not to mention that they would be paid a fair rate for their work instead of loosing money.