In recent weeks, the direct selling industry has been shocked by one revelation after another involving the Federal Trade Commission’s actions against direct selling companies. The stunning transformation of AdvoCare from a marketer with an MLM compensation plan to a single level plan due to an FTC enforcement action was still being absorbed when, BANG!, along comes the FTC action against Neora (formerly “Nerium”) and Jeff Olson and the counter civil suit by Olson and Neora challenging the FTC’s … [Read more...]
FTC v Vemma: What now for US direct selling?
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 … [Read more...]