Category Archives: Legal

New Video – Today’s key trends in MLM legal and business environment

What are the key trends in the legal and business environment in today’s world? A global $2 billion-dollar industry has great press, but it must be self-regulating, looking out for the consumers and distributors. Regulatory agencies today want MLM companies … Continue reading

Posted in CEO Interviews, Compensation Plan, Compliance Guidelines, Consultants, Consulting, Consumer Protection, Direct Selling, Distributor Education, For MLM Executives, Legal, MLM, MLM Attorney, MLM Companies, MLM History, Personal Use, Products, Videos | Tagged , , , , , , , , , | Leave a comment

The New FTC Direct Selling Guidance… Imperfect, But a Good Start – New Article

by Jeffrey A Babener (First Published in World of Direct Selling) Ring the bells that still can ring Forget your perfect offering There is a crack in everything That’s how the light gets in Leonard Cohen… Anthem The new FTC Direct Selling … Continue reading

Posted in Direct Selling, Direct Selling Association, Distributor Education, For MLM Executives, FTC, Headlines, Home-Based Business, Internal Consumption, Legal, MLM, MLM Articles, MLM Attorney, MLM in the News, Network Marketing, Party Plan, Personal Use, Pyramid, Recruiting | Tagged , , , , , , , , , , | Leave a comment

FTC and Direct Selling Come to the Table as Stakeholders: H.R. 3409

by Jeffrey A Babener (First Published in World of Direct Selling) Everything dies baby, that’s a fact. But maybe everything that dies someday comes back. Bruce Springsteen, Atlantic City By Jeff Babener, Copyright 2017 What a difference a year makes. In a well-received … Continue reading

Posted in Consulting, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, For MLM Executives, FTC, Headlines, Home-Based Business, Law Cases, Legal, MLM, MLM Articles, MLM Attorney, MLM in the News, Network Marketing, Party Plan, Raiding, Recruiting, SEC, Securities and Exchange Commission, Software/Technology, Startup | Tagged , , , , , , , | Comments Off on FTC and Direct Selling Come to the Table as Stakeholders: H.R. 3409

How have raiding rules evolved in direct selling contracts and policies and procedures? New Video!

Some companies state that you can’t recruit people that you didn’t personally sponsor. If you personally sponsor a friend or family member then why can’t you recruit them to join you at your new company? The short answer is that … Continue reading

Posted in Advertising, Commission, Compensation Plan, Consumer Protection, Direct Selling, Home-Based Business, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM in the News, MLM Startup, Network Marketing, Success, Videos | Tagged , , , , , | Comments Off on How have raiding rules evolved in direct selling contracts and policies and procedures? New Video!

Search for Certainty in Direct Selling… A Legal and Business Rationale for H.R. 3409

By Jeffrey Babener, © 2017/2018 (First Published in World of Direct Selling) Executive Summary: The legal environment and the accepted business model of leading direct selling companies has been relatively stable for 50 years. That equilibrium was upset by the regulatory … Continue reading

Posted in Consulting, Consumer Protection, Direct Selling, For MLM Executives, FTC, Headlines, Home-Based Business, Law Cases, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM in the News, Network Marketing, Personal Use, SEC, Securities and Exchange Commission | Tagged , , , , , , , | Comments Off on Search for Certainty in Direct Selling… A Legal and Business Rationale for H.R. 3409

Legally, are all Compensation Plans Viewed the Same?

Being in the MLM law business for over 30 years, we’ve been asked this question countless times. Direct selling business owners – especially MLM startup company owners – want to know which compensation plan structure will be the most supportive … Continue reading

Posted in Compensation Plan, Compliance Guidelines, Consultants, Consumer Protection, Direct Selling, Distributor Education, For MLM Executives, Home-Based Business, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Personal Use, Products, Pyramid, Startup, Videos | Tagged , , , , , , , , , , | Comments Off on Legally, are all Compensation Plans Viewed the Same?

The Thorny Issues of “Personal Use” in Direct Selling

There exists tension between the direct sales industry and industry regulators as to the role of “personal use” of products and services by distributors of MLM companies. The broad and ambiguous language in pyramid legislation has contributed to the problem. … Continue reading

Posted in Commission, Compliance Guidelines, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, Distributors, Earnings Claims, For MLM Executives, Law Cases, Legal, MLM, MLM Articles, MLM Companies, MLM History, Network Marketing, Party Plan, Personal Use, Pyramid, Sales/Selling, Videos | Tagged , , , , , , , , , , , , , , , | Comments Off on The Thorny Issues of “Personal Use” in Direct Selling

Is the FTC ramping up regulation of the MLM Industry?

Federal Trade Commission Chairwoman Edith Ramirez argued on October, 2016 at the DSA Policy Conference that it was time to ratchet up regulation of the direct selling industry, and not a time to “put the brakes” on more regulation of the … Continue reading

Posted in Conference, Consulting, Consumer Protection, Direct Selling, For MLM Executives, FTC, Headlines, Legal, MLM, MLM Articles, MLM Attorney, MLM in the News, Network Marketing, Party Plan, Personal Use, Pyramid, Raiding, Recruiting | Tagged , , , , , , , , , , , , , , | Comments Off on Is the FTC ramping up regulation of the MLM Industry?

21 Ways to Provide Legal and Ethical MLM Training to Distributors

You can look at MLM companies from several perspectives to get an idea if they are running a legal business or a pyramid scheme. In this post, we cover how legal MLM companies approach training their distributors. Legal direct selling … Continue reading

Posted in Consultants, Consulting, Direct Selling, Distributor Education, Distributors, For MLM Executives, Home-Based Business, Just for Fun, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Party Plan, Pyramid, Recruiting, Sales/Selling, Startup, Statistics, Success, Tax, Training, Videos | Tagged , , , , , , , , , , , , , , , , , | Comments Off on 21 Ways to Provide Legal and Ethical MLM Training to Distributors

Watch out for Pyramid Schemes! Some Warning Signs

How can you tell if a company is an pyramid scheme, unintentional cash gifting pyramid scheme, or otherwise downright illegal? Well, there is no single authority on the on the subject. There’s not really one single definition either. However, there … Continue reading

Posted in CEO Interviews, Compliance Guidelines, Consulting, Consumer Protection, Direct Selling, Legal, MLM Attorney, MLM Startup, Network Marketing, Personal Use, Ponzi Scheme, Pyramid, Raiding, Videos | Tagged , , , , , , , , , | Comments Off on Watch out for Pyramid Schemes! Some Warning Signs