Category Archives: Legal

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 , , , , , | Leave a comment

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 , , , , , , , | Leave a comment

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

Check to See if a MLM Company is Legal or a Pyramid Scheme

Prospective distributors often ask how they can find out if a MLM, network marketing, or direct selling company is legal or if it’s a pyramid scheme. There are a number of ways to research the company yourself; to be sure … Continue reading

Posted in Consultants, Consulting, Consumer Protection, Direct Selling, Direct Selling Association, Distributor Education, Distributors, Legal, MLM, Pyramid | Tagged , , , , , , , , , , , , , , | Comments Off on Check to See if a MLM Company is Legal or a Pyramid Scheme

Expert MLM Attorney Explains ‘What Are Unauthorized Earnings Claims?’ – Video

Expert MLM Attorney and Legal Consultant, Jeff Babener, explains what unauthorized medical claims are in his video “What Are Unauthorized Earnings Claims?” Have you seen or heard a direct selling company say something like, “Make $10,000 a month!” or “Guaranteed … Continue reading

Posted in Advertising, Commission, Compensation Plan, Compliance Guidelines, Consulting, Consumer Protection, Direct Selling, Distributor Education, Earnings Claims, For MLM Executives, Home-Based Business, Internet Marketing, Just for Fun, Legal, MLM, MLM Articles, MLM Attorney, MLM Companies, MLM Startup, Network Marketing, Part Time, Party Plan, Recruiting, Startup, Videos | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on Expert MLM Attorney Explains ‘What Are Unauthorized Earnings Claims?’ – Video

May 2016 Conference was a Success and Statistics

We pulled off some great numbers for the May 20, 2016 conference! In attendance were over 60 companies and 90 people, representing 18 states, the U.S., Canada and Europe! We appreciate all the guests in attendance, as well as the … Continue reading

Posted in Capitalization, Compensation Plan, Conference, Consulting, Direct Selling, For MLM Executives, FREE, Just for Fun, Legal, MLM, MLM Companies, MLM in the News, MLM Startup, Network Marketing, Party Plan, Products, Pyramid, Recruiting, Startup, Statistics, Success, Success Stories, Training | Tagged , , , , , , , , , , , , , , , , | Comments Off on May 2016 Conference was a Success and Statistics