Direct Sellers Update: Regulation, Law & Policy
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June 1, 2023
|6 min read
The Success By Health (FTC v. Noland) Decision and Its Impact on the Direct Sales Industry
explaining why he believed that the Federal Trade Commission (FTC) had proven that defendants Success By Health (SBH) and various related entities and
individuals had engaged in a pyramid scheme, made false income claims, and committed various other violations of the FTC Act. SBH’s conduct ...Read more
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.
February 9, 2023
|6 min read
landscape for non-compete clauses. Under the FTC’s new approach, companies would not be permitted to enforce non-compete clauses against their
workers. And yes, that includes independent contractors.
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
March 21, 2022
|2 min read
The FTC Remains Focused on Misleading COVID-19 Claims
misleading health and earnings claims related to COVID-19. Then in 2021, Congress enacted the COVID-19 Consumer Protection Act (the “Act”), providing for
civil penalties of up to $46,517 for every misleading claim about the treatment, cure, prevention, or mitigation of COVID-19. And just recently, m...Read more
October 4, 2021
|1 min read
June 22, 2021
|3 min read
Don’t Let Your Guard Down: The Limited Impact of the AMG Capital Decision
money on behalf of consumers in court, § 13(b) of the FTC Act.
June 22, 2021
|7 min read
The FTC’s Radar, and How to Stay Under It
many others receiving warning letters, it is no surprise that industry leaders want to better understand what the FTC is looking for and ways to prevent
becoming an FTC target.
June 22, 2021
|2 min read
The Future of the MLM Exemption From the Business Opportunity Rule Is at Risk
June 17, 2020
|6 min read
The FTC’s Heightened Scrutiny of Direct Sellers Continues During the COVID-19 Pandemic
COVID-19, companies must adapt to and remain mindful of the shifting environment in which they conduct business. Indeed, the COVID-19 pandemic has
created a complicated and risky compliance environment for companies. That is certainly true for direct selling companies, who remain on the r...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.”
January 29, 2020
|3 min read
Federal Court Dismisses Multiple Claims in Ongoing Class Action Against LifeVantage
direct-sales company that distributes dietary supplements, including Protandim—a supplement consisting of a blend of five herbal ingredients.
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.