Direct Sellers Update: Regulation, Law & Policy
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August 22, 2024
|2 min read
Update: FTC’s Noncompete Rule Set Aside
aside the Federal Trade Commission’s (FTC) rule imposing a national ban on noncompete agreements, preventing the rule from taking effect across the
country.
May 21, 2024
|3 min read
Navigating the FTC’s Final Rule Banning Non-Competes: Why Direct Sellers Shouldn’t Panic
are wondering how this ruling will impact their businesses and what steps they can take to protect themselves against unfair competition and misuse of their
intellectual property. However, amidst the apprehension, it’s essential to remember that there are avenues for safeguarding your interests, and ...Read more
November 2, 2023
|9 min read
Neora Part II: Lessons About Deceptive Claims
effect on the direct sales industry.
October 5, 2023
|6 min read
Neora Part I: The Decision and Its Implications
Nerium) a victory, denying every single claim the FTC brought, including the FTC’s argument that Neora was operating an illegal pyramid scheme and made
deceptive income and product claims.
March 10, 2023
|2 min read
advocates” and touted their expertise as medical practitioners, made numerous claims during webinars conducted in 2022 that doTERRA’s products could
prevent, treat, or cure COVID-19.
March 24, 2022
|3 min read
Are Your Agreements Enforceable?: Ensuring An Adequate Registration Process
provisions go a long way in making sure your company is protected from bet-the-business, expensive, and time-consuming class actions and other litigation.
But a recent decision out of California, Sellers et al. v. JustAnswer, LLC, 289 Cal. App. 5th 444 (2021), underscores the importance of ensuring yo...Read more
October 4, 2021
|1 min read
June 22, 2021
|2 min read
The Future of the MLM Exemption From the Business Opportunity Rule Is at Risk
May 26, 2020
|6 min read
New Class Action Calls Into Question MLM’s Independent-Contractor Classifications
MLMs will likely see challenges to their independent-contractor classifications.
March 24, 2020
|6 min read
Recent FTC Paper Likely Overstates MLMs’ Pyramid Potential
growing list: A pyramid scheme creates and exploits overly positive recruitment expectations to increase the company’s profits. In other words, by misleading
potential participants about the earning potential from recruitment-related rewards, pyramid schemes induce participants to join even if they ha...Read more
February 6, 2020
|2 min read
FTC Obtains Asset Freeze of Success By Health Top Executives in Arizona Federal Court
marketing company Success By Health, as well as taking the more extreme step to freeze the assets of top executives. Success By Health is best known for
its mushroom-infused instant coffee product “MycoCafe.”
December 3, 2019
|4 min read
The Direct Selling Self-Regulatory Council: What Your Business Should Know
inception, we’ve fielded many questions from our direct selling clients about what the Direct Selling Self-Regulatory Council (DSSRC) is and what its impact will
be.
November 20, 2019
|6 min read
New Executive Orders May Impact FTC Enforcement Actions Against Direct Sellers
regulation of the direct selling industry relies heavily on guidance, the orders are particularly relevant to our multi-level-marketing (MLM) and direct selling
clients. Although any assessment of the practical impact of these orders is speculative at this point, we believe they may affect the FTC’s regulati...Read more
October 10, 2019
|2 min read
Successfully Fighting Plaintiffs’ RICO Claims Alleging an Illegal Pyramid Scheme
RICO claim against a direct selling or multi-level marketing (MLM) company. In that Order, the Court dismissed the plaintiffs’ RICO claim against AdvoCare for
failure to state a claim based on the argument in AdvoCare’s motion to dismiss—filed by Winston attorneys on behalf of AdvoCare—that the plai...Read more
October 4, 2019
|10 min read
FTC v. AdvoCare: Enforcement Action Demonstrates Importance of Compliance Programs
order, agreed to abandon its multi-level compensation plan.[1] Under the order, AdvoCare must pay the FTC $150,000,000, which will be deposited into a
fund for equitable relief.
October 3, 2019
|less than 1 min read
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regulatory, and policy developments and updates straight to you.