SMC violating Microsoft license agreements?

SMC (the ones on TV, you know the Happy Days guy) are promoting their
"exclusive" website marketing program that basically does not give
potential sub-wholesalers control over the web site?

Sub-wholesalers (members of SMC) do not have the option of NOT
recruiting additional SMC members (competition) by removing that option
on the expensive web sites they have to pay for?

SMC members do not have the option of removing certain items from the
inventory they are selling?

Doesn't the IRS classify that as "loss of control" and therefore all
members of SMC using websites in that manner would be classified as
"employees" since they are not true "wholesalers" in control of their
own operations?

Since they are violating US tax laws and using Microsoft products are
they violating the license agreements of Microsoft?