SECTION 6: Network Marketing and the Law
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should
Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. MLM Raiding
issues are a continuous challenge for MLM Companies. Many problems
may be avoided by appropriate MLM Legal language in MLM distributor
agreements and MLM Policies. Guidelines for activity during the MLM
distributorship and after the MLM distributorship are imperative.
MLM Legal and MLMLegal.com and Babener and Associates provides
expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM
software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important
component for MLM startup. Careful Choice of MLM Software is another
component of MLM Corporate. An MLM Consultant and MLM Law and
MLM Legal is part of the MLM Startup Team. MLM Compensation must
be reviewed by an MLM Consulting standpoint by a MLM Consultant and
MLM Legal and MLM Law professional and programmed by a MLM Software
and MLM Technology provider.
Enter the Postal Service.
Mail-driven campaigns have been an excellent source of recruitment and sales for both MLM distributors and companies. Traditionally, the U.S. Postal Service has remained aloof from MLM marketing as most recruitment and sales have been through one-on-one personal contacts. It was inevitable, however, that such mail-driven campaigns would produce monitoring by local postal inspectors or investigations triggered by inquiries to local postal offices. For years, postal inspectors chased illegal lottery schemes, chain letter schemes, blatant boiler room fraud operations and other scams. Often, however, many mail-driven scams have posed as legitimate multilevel marketing companies. As might be expected, the line has become blurred for many local postal inspectors, as well as the general counsel's office of the U.S. Postal Service in Washington, D.C., between legitimate multilevel marketing opportunities and illegal schemes. Unfortunately, enforcement activity has become blurred and confusing, as well as administrative decisions in this area.
The U.S. Postal Service enforces two types of postal statutes. First, mail fraud statutes prohibit soliciting and receiving of monies through the mail under false pretenses. Naturally any multilevel program in which fraudulent earnings representations or product representations are made will trigger enforcement action. Common sense and legal awareness should dictate to MLM companies and MLM distributors guidelines for avoiding enforcement under mail fraud statutes. Experience indicates that nine times out of ten the culprit in this category is a representation, such as "Earn $10,000 a month after your first week with minimal effort." As is the case with most attorneys general, the U.S. Postal Service expects some attempt at substantiation of earnings claims. U.S. Postal lottery statutes are a much more difficult animal. The statutes are quite ambiguous and, if improperly enforced, may attempt to ensnare even the best of MLM programs. Postal lottery laws provide that it is illegal to charge a consideration for the "chance" to win a prize using the U.S. Mail. Applied to MLM companies, this approach usually focuses on the question of whether or not the receipt of override commissions from a downline sales organization is based on chance or whether companies require that a sponsoring distributor exerts meaningful control and management over his sponsored sales organization.
DIRECT SALES consultant practice tips.
DIRECT SALES Companies should join DIRECT SALES Trade organizations. DIRECT SALES trade organizations provide educational assistance
to members and assert positive DIRECT SALES Industry positions on DIRECT
SALES Regulations and DIRECT SALES Laws. DIRECT SALES Legal and
MLMLegal.com and Babener and Associates provides expert DIRECT
SALES Consultant and DIRECT SALES Consulting advise on DIRECT SALES
corporate, DIRECT SALES software, DIRECT SALES Compensation, DIRECT
SALES Taxes, etc. DIRECT SALES Consulting is an important component
for DIRECT SALES startup. Careful Choice of DIRECT SALES Software
is another component of DIRECT SALES Corporate. An DIRECT SALES
Consultant and DIRECT SALES Law and DIRECT SALES Legal is part of the
DIRECT SALES Startup Team. DIRECT SALES Compensation must be reviewed
by an DIRECT SALES Consulting standpoint by an DIRECT SALES Consultant
and DIRECT SALES Legal and DIRECT SALES Law professional and programmed
by a DIRECT SALES Software and DIRECT SALES Technology provider.