In recent weeks it has been almost impossible to have a conversation with a US direct selling executives without the subject of the FTC v. Vemma Nutrition Company coming up. No doubt there are important legal issues and compliance standards that have been raised in the Vemma case. However it may take years before a court finally rules on this case or one like it where the FTC applies the same standards. Moreover those who think that settling some of the issues and standards through a legislative effort are also facing a process that will take years to accomplish especially with the current Congressional grid lock in Washington, DC.
So the question is not whether the FTC is right or wrong in its positions or whether legislative relief is the answer… the question is: “what do direct sellers do to stay out of the regulatory spotlight while the legal issues are being sorted out?”
If you are a new start-up company in the US the way forward is much easier than it may be for an established company. And contrary to what some may think, in my opinion, the FTC standards set out in the Vemma case have implications for network marketing and one on one and party plan marketing models.