As we’ve written previously, direct selling companies are facing a wave of lawsuits, primarily in California, claiming that distributors do not qualify as independent contractors and instead are misclassified employees. Just recently, however, a California court refused to certify a class on these claims—an important outcome for all direct sellers.

As federal antitrust enforcement continues to evolve, adjust priorities, and in some cases, stall out, states are increasingly enhancing their enforcement focus, resources, and law.