Testimonials – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More. http://mlmlegal.com/MLMBlog From Multilevel Marketing Attorney and Business Consultant, Jeff Babener. Run, Learn & Get Lost at MLMLegal.com Sat, 07 Mar 2020 15:31:49 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.25 Are you ready to start your MLM company in 2015? Watch this motivational video: Since You Are a MLM Attorney, Why Would You Host the MLM Startup Conference for the Executives of Startup and Existing Companies? http://mlmlegal.com/MLMBlog/are-you-ready-to-start-your-mlm-company-in-2015-watch-this-motivational-video-since-you-are-a-mlm-attorney-why-would-you-host-the-mlm-startup-conference-for-the-executives-of-startup-and-existing-c/ Thu, 09 Apr 2015 20:21:46 +0000 http://mlmlegal.com/MLMBlog/?p=925 We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We host the original MLM Startup Company that many try to imitate. We have started and advised many … Continue reading

Visit us at www.mlmlegal.com to learn more.

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We have hosted more than 70 national conferences on starting and running a direct selling, network marketing, MLM or party plan company. We host the original MLM Startup Company that many try to imitate. We have started and advised many of the leading companies in the industry. We have a “big picture” approach that is difficult to find elsewhere. We are big believers in education and our website, www.mlmlegal.com, is hopefully evidence of this, with hundreds of articles, cases, statutes, and scores of videos. We take a particular satisfaction in helping entrepreneurs pursue their dreams and the consequence is often the creation of thousands of jobs and opportunities. And at our conferences, we have started many companies that are, today, household names. It has been a pleasure and honor to assemble professionals in these conferences to assist individuals to create “something from nothing.”

Join us at the next MLM Startup Conference in Las Vegas!

The Original MLM Startup Conference – Starting and Running the Successful MLM Company Conference in Las Vegas

The MLM Startup Conference is perfect for executives who have a lot of questions that need answered by a broad range of experts. It is also perfect for those who need general knowledge about the network marketing industry, by www.mlmlegal.com..

The MLM Startup Conference is perfect for executives who have a lot of questions that need answered by a broad range of experts. It is also perfect for those who need general knowledge about the network marketing industry.


The Starting and Running the Successful MLM Company Conference is just around the corner! For over 30 years we have hosted over 70 national conferences to educate startup and existing MLM company executives. All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener.

The MLM Startup Conference is held three times per year in February, May and October. For current dates, click HERE.

Still unsure? Our MLM Startup Conference is incredibly popular and well-attended. Visit this page for statistics on our last event (i.e. attendance count, company count, countries and states represented).

Did you miss the February MLM Startup Conference? In attendance were over 100 people, representing 65 companies from 20 states and five countries (Canada, South Africa, Mexico, Brazil, and the United States). The companies in attendance represented the entire spectrum of company ages, from startups to established companies. All attended to learn more about the network marketing industry, to grow their companies, to meet experts in the industry, and to educate themselves on the MLM industry, by www.mlmlegal.com..

Did you miss the February MLM Startup Conference? In attendance were over 100 people, representing 65 companies from 20 states and five countries (Canada, South Africa, Mexico, Brazil, and the United States). The companies in attendance represented the entire spectrum of company ages, from startups to established companies. All attended to learn more about the network marketing industry, to grow their companies, to meet experts in the industry, and to educate themselves on the MLM industry.


WHO ARE THE SPEAKERS?

Direct Selling Attorney, Jeff Babener, Founder of Babener & Associates and Sponsor of the MLM Startup Conference, has over 30 years of experience in the industry, representing companies such as Avon, Nikken, Melaleuca, Discovery Toys, Usana, and NuSkin.

MLM Industry Consultant, Mike Sheffield, with The Sheffield Group and Co-Sponsor of the MLM Startup Conference, has helped launch over 800 companies over the last 27 years.

Over the course of two days, you will hear from many leaders in the direct selling industry, who include:

Expert, Experienced MLM Attorney, Jeff Babener, www.mlmlegal.com.

Expert, Experienced MLM Attorney, Jeff Babener

Jeffrey A. Babener, of Portland, Oregon, Conference Chair and Sponsor, www.mlmlegal.com, is the principal attorney in the law firm of Babener & Associates. He represents leading U.S. and foreign companies in the direct selling industry. He has been a key advisor to such companies as Avon, Herbalife, Discovery Toys, Nikken, Shaklee, NuSkin, Excel, Usana, Fuller Brush, Cell Tech, Enagic, Sunrider, Melaleuca, Nerium International, etc. He is a frequent lecturer and has been interviewed on the industry, and published, in such publications as Money, Inc., Atlantic Monthly, Success, Entrepreneur, Kiplinger’s Personal Finance, Home Office Computing, Business Start-Ups, Direct Selling News Magazine, and Money Maker’s Monthly. He is editor of the industry publication, Direct Sales Legaline. Mr. Babener is also the author of the books; Tax Guide for MLM/Direct Selling Distributors, Network Marketer’s Guide to Success, The MLM Corporate Handbook, Network Marketing: Window of Opportunity, and Network Marketing: What You Should Know (used as the college curriculum textbook at Utah Valley State course on network marketing). He is editor of one of most frequented network marketing educational web sites, www.mlmlegal.com. He has served as Chair of more than 70 national conferences on starting and running the direct selling company. He serves on the Lawyers Council and Government Relations Committees of the Direct Selling Association (DSA), and he has served as General Counsel and on the board of the MLMIA (Multilevel Marketing International Association). He has lectured at major industry trade meetings and at such educational institutions as the Univ. of Illinois, University of Texas, University of Houston, etc.  He is a graduate of the University of Southern California Law School where he served as an editor of the USC Law Review, followed by the appointment as a law clerk to Hon. David Williams, U.S. District Court for the Central District of California.

A number of Babener & Associates client companies have been success stories over the last several decades, including several billion dollar and NYSE companies such as Avon, Herbalife, NuSkin, Usana. Other successful companies, to which the law firm has provided varying level of advisory, have included Melaleuca, Nikken, Enagic, Discovery Toys, Amazon Herbs, TriVita, Nerium International, Shaklee, PrePaid Legal, Tupperware, Primerica,  Arbonne, Longaberger, Excel Communications, ACN, etc.

Mr. Babener has served as lead trial counsel for multiple cases on direct selling throughout the U.S. Further background material on direct selling will be found at the website, www.mlmlegal.com, where he is editor.

Mike Sheffield, by www.mlmlegal.com.

Mike Sheffield

Michael L. Sheffield is Chairman and CEO of The Sheffield Group Inc., a full service direct sales consulting firm and Chairman Emeritus of the Multi Level Marketing International Association. The Sheffield Group (www.sheffieldnet.com) specializes in startup operations, compensation plan development, distributor recruiting systems, and sales tools. The firm also consults on new product concept development including positioning, pricing strategies, marketing, and product sales strategies. The Sheffield Group has assisted in over 800 direct selling company start-ups, including 23 of the top 100 MLM/Party Plan companies in the world. In addition, Mike has assisted in numerous special projects for many of the industry’s most prestigious direct selling, MLM and party plan companies. He has been a frequent lecturer on launch strategies for MLM companies at various industry conferences as well as the Schools of Business at Arizona State University, UC Berkley, University of Cincinnati, California Lutheran University,
Anderson University and others. He was selected to make a special presentation on behalf of MLM at the Harvard Business School Association symposium. Mike is nationally respected as a leading compensation plan design expert and on the special staff teaching the subject at the University of Illinois at the Chicago Network Marketing Seminar. He has co-authored numerous academic papers on MLM presented at various academic conferences. He has served as sponsor and chief coordinator of various academic/corporate MLM conferences at the University of Texas, El Paso (UTEP). His contributions to these academic conferences earned him the honor of being the subject of a feature article in Success Magazine. Mike has been the MLM Expert for Entrepreneur Magazine and a contributor to the Entrepreneur Magazine training manual teaching how to start a successful MLM company. He can be contacted at www.sheffieldnet.com.

Clifton Jolley, Ph.D., of Dallas, Texas, is President of Advent Communications and has provided communications products and consulting to leaders in network marketing for more than 15years, in addition to teaching communications at the university level both in the United States and abroad. His innovation and skill have been heralded in the Atlantic Monthly, Success Magazine, Wave 3, and numerous other national publications and broadcasts. He has been a frequent contributor to leading magazines and has acted as media spokesman for such major companies as A.L. Williams, Home Shopping Network, Nokia, Sunrider, Quorum, Nikken, Oxyfresh, Network 2000, and dozens of others. His skill in crisis intervention and media relations has been credited with rescuing dozens of Advent clients from media scrutiny. Dr. Jolley’s company is known for state-of-the art graphics production, including distributor kits and manuals and Web site production. Advent Communications also provides its clients award-winning video production, executive communications and distributor programs.

Robert Proctor is President of MultiSoft Corporation, a veteran provider of MLM Software to the Network Marketing Industry for over 25 years. With offices in the USA, Europe and Asia, MultiSoft Corporation provides turn-key and custom MLM software packages from start-ups to mature companies with a focus on “Internationalized” MLM software. Robert has worked with hundreds of companies around the globe and has been involved in nearly every aspect the network marketing industry for 16 years as a developer, designer, distributor, owner, operator, and provider to the industry. Robert has built down-line organizations exceeding 50,000 customers and 6,000 distributors. Robert has a diverse background that includes public speaking, radio & television, advertising and marketing, business law, accounting & finance, banking, sales, customer service, compensation plan evaluation, network operations, programming, design, and management.

Robert Butwin, of Santa Rosa, California, is the consummate MLM professional. He has built and led large distributor organizations. He is highly respected in the MLM corporate community and juggles his distributor schedule with duties as a mentor on recruiting to corporate management of many leading companies. He is the author of the highly acclaimed “Street Smart Networking,” available in bookstores everywhere.

Garvin DeShazer, Executive Consultant, Sheffield Group, has nearly 30 years experience as an entrepreneur. With 26 startups or acquisitions of his own, in industries ranging from alternative fuels to network marketing to fine arts, he has extensive experience in corporate and marketing management and driving sales. Included in his past corporate experience is the founding of a major direct selling company in the home security arena. He has served as a Senior Consultant for more than 60 network marketing companies where he focuses on strategic planning, key distributor development programs, creative writing, and project management.

Alfred White is a Senior Management Consultant for Hamilton LaRonde & Associates of San Diego, California and Vancouver, Canada. Mr. White has extensive international experience. For the last twenty-two years, Mr. White has been a management and marketing consultant to the direct selling, multilevel marketing and network marketing industries. Mr. White’s experience includes more than 200 assignments with a wide range of companies both domestic and international. He is highly regarded for his expertise in operations management and compensation plans. Mr. White designed the PDX computerized system for structuring new MLM companies. The PDX system is a very effective system that can bring a company from concept to fully operational at considerable savings in time and money. Above all Mr. White has a love for the MLM/Network marketing industry and devotes time and energy developing systems for the entrepreneur to be the owner of their own network marketing company. He is a featured writer of articles in national journals on the subject of network marketing.

Rod Cook is most commonly known as the MLM WatchDog of the industry. He studies the good of the MLM industry and at the same time tries to stomp out pyramid schemes. Part time he is a consultant who helps people start up new companies so they are a credit to the industry. At MLMWatchdog.com, editor in chief Rod Cook and his field reporters handle hundreds of questions or complaints a week about MLM companies. Rod jokingly says, “I live in the middle of the MLM Information Highway and get run over by trucks twice a day!” Rod is considered the ultimate MLM “marketing” inside information source! His articles have been published in over 30 different publications.

Sandy Elsberg, of Orange County, California, is one of the most successful and admired distributors in the MLM world. She has led huge sales networks over the years. She is sought out frequently by MLM companies and distributor groups to speak and train. She is the author of the best seller, Bread Winner, Bread Baker.

Wayne Hinkle is V.P. of Sales of Trinity Software of Dallas, Texas. Trinity is a leading technology solutions provider to network marketing companies. Prior to becoming V.P. of Sales, Hinkle served 20 years at Nortel Networks where he was responsible for customer service and satisfaction for the entire eight-state region of the SBC operator services division. He is a specialist in customer support and service as well as technical support, training and project management.

Greg White of Vancouver based Hamilton LaRonde has a twenty five year career in meeting management and coordination of MLM sales materials design and production. He has managed every single Starting and Running Conference since the 1980’s, more than 50 conferences, and supervised all of the art work for the conference.

Scott Fitzpatrick, Marketing Director of Pivotal Payments of Montreal, Canada. Pivotal is one of the leading merchant account processors for the Direct Selling/MLM industry, providing solutions for e-commerce online processing as well as traditional credit card, debit card and other processing for sales by direct selling companies and their sales force.

Sean Eggert is Director of National Sales with Hanna Shea Consulting, Scottsdale, Arizona, which provides Executive Search, Recruitment Process Outsourcing and International Staffing services for Fortune 500 clients. Additionally, Hanna Shea has a specialized search service that is dedicated to MLM and Direct Sales Organizations to identify and recruit top talent as members of the leadership management team.

Jeffery Boyle, of Nampa Idaho, is the CEO of Boyle Network, a focused industry resource specializing in empowerment of distributors and companies through multimedia production on the web and social networking. In addition, he is editor-in-chief of www.networkingstar.com, an educational and informative website profiling the people and issues of the network marketing industry.

Rosann (Ro) Shales, of The Sheffield Group, Scottsdale, Arizona, is a long time Party Plan expert. Ro is a veteran direct seller with multi-faceted experience, both in the sales field, having built her own $1.3M organization, and as a corporate executive working with companies like Tupperware, PartyLite and Jafra Cosmetics. This has served her well in working with start-up, established and mature-market companies. As a strategist and connector, Ro brings ideas and people together for increased recruiting, leader development, and retention to drive revenue and success. Roseann is the author of “RECRUIT! Connecting with People to Change Your Business and Your Life,” available in English and Spanish. RECRUIT is a valuable resource to everyone in MLM and Party Plan, both field and corporate, plus everyone who recruits volunteers or develops teams.

Patti Lamb, of Santa Barbara, California, is President of Alexandria Services. On behalf of startup and established MLM companies, Alexandria specializes in searching out multiple resource options for merchant account processing with established banking and processing financial organizations.

WHY?

The information you will gain and relationships that you will build by attending the conference are invaluable. You’ll receive information on how to:

– Structure your compensation plan
– Legalize your company
– Recruit key employees and top-ranking distributors
– Develop a business model
– Generate leads
– Fund your business organization
– Establish your website and technology platforms
– Better understand the direct selling industry
– And, so much more

Read why network marketing executives have consistently attended the MLM Startup Conference for over twenty years:

– [I] Launched [the company] Federal Chamber of Commerce in 2002, after attending your Conference. Contracted with Mr. Alfred White to consult on our Compensation Plan. Recruited 10,000 Reps and $5,000,000 volume in 9 months. Cashed out stock in 2003. Back again in 2013 with new partners and a new concept…

– We want to get the fundamentals and the basics down… get a good review of what needs to be done to be successful…

– We have a traditional business at the moment and we are looking to take it into the realm where it’s more personalized, it’s more about building people and an experience. It has been absolutely worth our trip. We are
looking to take our business to the next level and build relationships.

– [I’ve] been in network marking for 30 years [but] we are learning a lot of things about how to launch, how to reach the people we need to have, and again, the things that are required to make a successful company, not only for us but especially for our customers and for our affiliates.

– I want to teach other people how to run their own clothing business and have fun doing it. I have a distribution plan. I have a unique product that I need to take nationwide in a couple of months.

– I’m here because I want to know more about multi-level and I can replicate that experience in my country (Columbia) … It’s worth it to be here.

– The reason I came to the show was to learn more about how to launch my direct sales company. I’m very comfortable and accustomed to selling through more traditional networks; however, I believe that the product that I’m launching is more suitable for direct sales; to get direct-to-consumer faster and in greater sales.

– I have a huge to-do list… Once I know what I’m supposed to be working on I won’t spin my wheels.

(Additional testimonials can be seen in the following video: MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com.)

WHERE WILL THE MLM CONFERENCE BE HELD?

The MLM Startup Conference will be held in Las Vegas. Call 1-800-231-2162 for the exact location. Why don’t we advertise the exact location? Since our conference is solely educational (no selling or vending allowed!), we don’t allow vendors, distributors and other solicitors to attend the event. This enables us to maintain the conference’s high standards. Therefore, only registered guests are given the address after they’ve registered. However, if for some reason you cannot attend after registering, we will refund 100 percent of your attendance cost.

WHEN DOES THE MLM CONFERENCE TAKE PLACE?

February, May and October – Las Vegas, Nevada. Click HERE for current dates.

HOW MUCH DOES IT COST TO ATTEND?

The price to attend is $195 for the first person and each additional attendee is $150. We accept all major credit cards. Reservations must be made via phone, prior to the event. 503-226-6600 or 800-231-2162.

Want to attend the MLM Startup Conference in Las Vegas on a budget? Save $345 in registration fees!

WHAT ELSE DO I NEED TO KNOW?

 

FREE to all attendees - "How To" Manual, by www.mlmlegal.com.

FREE to all attendees – “How To” Manual

Each attendee will receive a FREE copy of the Starting and Running the Successful MLM Company Manual. Some of the chapters include:

Legal Issues
MLM Law in 50 States
FDA Health Claims: The Final Rules
The Snail that got Mugged: FTC v. Direct Selling
Start-up  Issues
Incorporating the Network Marketer
Five Dynamics that Drive An MLM Company Product
Creating Your Next Million Dollar Product
Treasure Hunting for New Products
Compensation Plans
Comp. Plan Conversion: Direct Sales to MLM
Your Compensation Plan’s Competitive Edge
Communications and Media
Focus on the Mission…Not the Commission!
When the Media Calls… Who Answers the Phone?

Attendees receive over 30 consulting hours with an array of industry experts – all in one location.

HOW CAN I FIND OUT MORE INFORMATION?

Visit our main website:
www.mlmlegal.com

Read our blogs:
http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Watch the videos:
MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

Since You Are a MLM Attorney, Why Would You Host the MLM Startup Conference for the Executives of Startup and Existing Companies?

BEST BET?

Call us to register: 503-226-6600 or 800-231-2162

CAN’T MAKE IT?

As mentioned, our conference has taken place consistently over the last thirty years. We hold each conference three times per year. Join us in February, May or October. Check MLMLegal.com for the most current conference dates.

Don’t get fooled by copycat conferences! We host the original MLM Startup Conference – – responsible for launching many industry-leading companies — perfected over the course of a quarter of a century to ensure the highest quality of information, most knowledgeable experts, and most practical advice from qualified consultants.

Join us at our next conference! Over the course of two days, attendees will hear from scores of industry experts, and if they choose, can sign up to meet with the speakers for individual one-on-one time. A full list of speakers and their biographies/credentials can be found at http://www.mlmlegal.com/bio.html.

Lastly, learn how you can receive two FREE tickets to attend the May 2015 Starting and Running the Successful MLM Company Conference by visiting our Innovation Campaign page.

 

Visit us at www.mlmlegal.com to learn more.

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Did You Miss IT?! Next MLM Startup Conference is February 26 & 27, 2015! http://mlmlegal.com/MLMBlog/did-you-miss-it-next-mlm-startup-conference-is-march-5th-6th-2015/ Wed, 22 Oct 2014 18:49:18 +0000 http://mlmlegal.com/MLMBlog/?p=895 The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 26 & 27 in Las Vegas. This is the 70th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup entrepreneur. … Continue reading

Visit us at www.mlmlegal.com to learn more.

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If you don't start it right, you can't expect to get it right.

If you don’t start it right, you can’t expect to get it right.

The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 26 & 27 in Las Vegas. This is the 70th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup entrepreneur. Call our office to register or for additional information: 503-226-6600 or 800-231-2162.

HOW CAN I FIND OUT MORE?

Visit the website:

www.mlmlegal.com

Or, read visit our blogs:

http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Extensive information about the conference can be found here.

Watch the MLM Startup Conference videos:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

BEST BET? Call:

503-226-6600 or 800-231-2162

Visit us at www.mlmlegal.com to learn more.

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Raise Capital to Start Your Network Marketing Company http://mlmlegal.com/MLMBlog/raise-capital-to-start-your-network-marketing-company/ Thu, 17 Apr 2014 17:40:02 +0000 http://mlmlegal.com/MLMBlog/?p=825 Raising capital to fund your network marketing startup can be tricky. In fact, there is no clear cut answer to finding funding. However, there are options available to MLM company owners. There are many giant direct sales companies operating today … Continue reading

Visit us at www.mlmlegal.com to learn more.

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Your need for capital is in direct inverse proportion to your ability to recruit.

Your need for capital is in direct inverse proportion to your ability to recruit.

Raising capital to fund your network marketing startup can be tricky. In fact, there is no clear cut answer to finding funding. However, there are options available to MLM company owners. There are many giant direct sales companies operating today that began with a very limited budget, in their basements and garages. Many of these companies grew to the size that they are now organically. You, however, may be in a different situation where the influx of capital is necessary to keep your business afloat.

This article will provide you with some details of how you can get free and trusted information on how to raise capital for your direct selling business. Experts generally propose that it costs around $100-$200 thousand to start up a network marketing company. This article will provide you with some ideas as to where to find funding and links to online information written by experienced MLM industry experts.

1)      Do you have a substantial recruiting background? If you are a seasoned recruiter and are able to attract a strong lineup of consultants then your need for capital will decrease considerably. Expert MLM Attorney Jeff Babener always says, “Your need for capital is in direct inverse proportion to your ability to recruit.” If you are able to attract a strong sales force then your need to raise capital outside of the company may greatly diminish. Consultants will be the key to your success. If you are unable to recruit, or don’t have a recruiting background, then you may want to consider hiring someone who has recruiting experience.

2)      Do you have personal capital? MLM startups often find the capital that they need in their own bank accounts, or the bank accounts of family and friends. In some cases, an angel investor is willing to invest in the company. These sorts of investments are based primarily on a personal relationship, as well as trust and loyalty.

3)      What about public financing? Unfortunately, not many venture capital firms are interested in investing in startup network marketing companies. The startup MLM company has the tendency to be run by inexperienced business owners needing only a few hundred thousand dollars, which isn’t very attractive to large investors. In nearly all cases, investment into the company will come from a close source. Once your business is worth millions, then the investment firms will take notice. You can read about some of the more famous MLM success stories on these pages: Silpada, Herbalife, Pampered Chef, and Visalus.

Another great place to get information on raising capital for your business is at the Starting and Running the Successful MLM Company Conference where industry experts will provide you with individual one-on-one time. The current and easiest way to do this is to visit the page of our Innovation Campaign. The May 15th & 16th, 2014 Innovation Campaign enables network marketing company owners the ability to receive two free tickets to our next Starting and Running the Successful MLM Company Conference in Las Vegas (a $345.00 value!). All you have to do is fill out a brief survey at our sister website: www.mlmattorney.com, and we will contact you right away to confirm your free tickets to the event. Attending this event will give you direct access to several MLM industry experts, including capitalization experts and MLM legal expert, Jeff Babener. Visit our Innovation Campaign page for complete information about the conference, including the topics that will be covered, the speaker list, videos, testimonials, and much more. For additional questions please call 800-231-2162.

It won’t be easy raising capital to fund your startup, but we believe this article will help give you some ideas and help you to understand that it is possible to start small and make it big. For more information on raising capital visit www.mlmlegal.com and www.mlmattorney.com.

Here are some additional articles on raising capital that you may find helpful:

Are there MLM Companies That Have Achieved Success on a Low Budget?

How Do I Find Top Distributors?

New Video – Executive Interview by the DSWA – “Legal Hotspots for Direct Selling Companies” with Jeff Babener

MLMlegal Releases New Film on the MLM Startup Conference – Produced by Networkingstar.com Video
The MLM Startup Conference in Las Vegas
Video

Visit us at www.mlmlegal.com to learn more.

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Why do MLM Companies Require Distributors to Use Replicated Websites Rather than Distributor-Created Websites? http://mlmlegal.com/MLMBlog/why-do-mlm-companies-require-distributors-to-use-replicated-websites-rather-than-distributor-created-websites/ Tue, 01 Apr 2014 20:26:02 +0000 http://mlmlegal.com/MLMBlog/?p=811 Many companies require their consultants to use replicated websites because they are rightfully concerned about unauthorized medical and earnings claims as well as confusion in the search engines. Therefore, many leading companies provide authorized replicated websites to distributors and prohibit … Continue reading

Visit us at www.mlmlegal.com to learn more.

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Consultants are given replicated websites by established companies.

Consultants are given replicated websites by established companies.

Many companies require their consultants to use replicated websites because they are rightfully concerned about unauthorized medical and earnings claims as well as confusion in the search engines. Therefore, many leading companies provide authorized replicated websites to distributors and prohibit individual-created websites.

There are three primary reasons for this, which include:
1. To avoid unauthorized medical and earnings claims
2. To assert control over the company’s trademark
3. And, to avoid distributor websites competing against the primary company website in a way that the company website gets lost or is displaced from the top of search results for the company or its products.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place May 15th & 16th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

Visit us at www.mlmlegal.com to learn more.

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Quote of the Week – Future of 2014 http://mlmlegal.com/MLMBlog/quote-of-the-week-future-of-2014/ Tue, 18 Feb 2014 17:44:50 +0000 http://mlmlegal.com/MLMBlog/?p=786 “Looking from your perspective, what will be the most important issue, whether it be an opportunity or a threat, in the direct selling industry that will need a closer focus Next Year?” As one American troubadour notes, “money talks, but … Continue reading

Visit us at www.mlmlegal.com to learn more.

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“Looking from your perspective, what will be the most important issue, whether it be an opportunity or a threat, in the direct selling industry that will need a closer focus Next Year?”

As one American troubadour notes, “money talks, but it can’t sing and dance, and it can’t walk…” For the direct selling industry, in 2013 the markets and money managers have swung to the positive by billions of dollars. But industry observers always await for the “other shoe” to drop; lack of legislative and regulatory clarity means that the industry is only as secure as its last court opinion. Until federal legislation and the FTC rules are amended to recognize that distributor “personal use” of products is within the paradigm of legitimate direct selling, as opposed to pyramid scheme, the cloud will persist.

Click here to view Mr. Babener’s quote at World of Direct Selling.

MLMLegal.com has launched the Innovation Campaign for its February 2014 MLM Startup Conference. Read how to get your two free tickets by clicking HERE!

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place February 27th & 28th, 2014 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

Visit us at www.mlmlegal.com to learn more.

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Next MLM Startup Conference – Feb. 27 & 28, 2014 http://mlmlegal.com/MLMBlog/next-mlm-startup-conference-feb-27-28-2014/ Tue, 29 Oct 2013 17:26:29 +0000 http://mlmlegal.com/MLMBlog/?p=728 The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 27th & 28th, 2014 in Las Vegas. This is the 66th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup … Continue reading

Visit us at www.mlmlegal.com to learn more.

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Free MLM Startup Manual for all attendees of the MLM Startup Conference.

The MLM Startup Conference for Executives of Startup and Existing Direct Selling Companies takes place February 27th & 28th, 2014 in Las Vegas. This is the 66th annual, two-day conference, featuring industry experts and invaluable tools for the MLM startup entrepreneur. Call our office to register or for additional information: 503-226-6600 or 800-231-2162.

HOW CAN I FIND OUT MORE?

Visit the website:

www.mlmlegal.com

Or, read visit our blogs:

http://mlmlegal.com/MLMBlog/ and http://mlmattorney.com/blog/

Extensive information about the conference can be found here.

Watch the MLM Startup Conference videos:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

BEST BET? Call:

503-226-6600 or 800-231-2162

Visit us at www.mlmlegal.com to learn more.

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Press Release – MLMLegal.com and Babener & Associates Announces its 65th National Starting and Running the Successful MLM Company Conference http://mlmlegal.com/MLMBlog/press-release-mlmlegal-com-and-babener-associates-announces-its-65th-national-starting-and-running-the-successful-mlm-company-conference/ Thu, 12 Sep 2013 23:26:11 +0000 http://mlmlegal.com/MLMBlog/?p=705   MLMLegal.com Press Releases 12 Sep, 2013 17:48 CET The conference will be held October 24th & 25th, 2013, which is quickly approaching! For more than 25 years, leading industry experts have educated the executives of starting and existing MLM, … Continue reading

Visit us at www.mlmlegal.com to learn more.

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The 65th National MLM Startup Conference in Las Vegas

MLMLegal.com Press Releases

12 Sep, 2013 17:48 CET

The conference will be held October 24th & 25th, 2013, which is quickly approaching!

For more than 25 years, leading industry experts have educated the executives of starting and existing MLM, direct
selling, network marketing, and party plan companies on how to structure their compensation plans, legalize their
companies, recruit key employees and top-ranking distributors, develop business models, generate leads, fund
their business, establish their website and technology platforms, better understand the direct selling industry, and
so much more.

The next MLM Startup Conference takes place October 24th& 25th, 2013in Las Vegas. View the conference flyer
page at http://www.mlmlegal.com/srs2.html to learn more.  

This is the original MLM Startup Conference – responsible for launching many industry-leading companies –
perfected over the course of a quarter of a century to ensure the highest quality of information, the most
knowledgeable experts, and the most practical advice from qualified experts.

Over the course of two days, attendees will hear from scores of industry experts, and if they choose, can sign up to
meet with the speakers for individual one-on-one time. A full list of speakers and their biographies/credentials can
be found at http://www.mlmlegal.com/bio.html.

The educational information gained by attending this event is invaluable. Here are just a few of the testimonials
from past attendees:

“We have a traditional business at the moment and we are looking to take it into the realm where it’s more
personalized, it’s more about building people and an experience. It has been absolutely worth our trip. We are
looking to take our business to the next level and build relationships.”

“The reason I came to the show was to learn more about how to launch my direct sales company. I’m very
comfortable and accustomed to selling through more traditional networks; however, I believe that the product that I’
m launching is more suitable for direct sales; to get direct-to-consumer faster and in greater sales.”

“[I’ve] been in network marking for 30 years [but] we are learning a lot of things about how to launch, how to reach
the people we need to have, and again, the things that are required to make a successful company, not only for us
but especially for our customers and for our affiliates.”

Each attendee will receive a FREE copy of the Starting and Running the Successful MLM Company Manual.

How do you find out more information?

Visit our website:

www.mlmlegal.com

Visit our blogs:

http://mlmlegal.com/MLMBlog/

http://mlmattorney.com/blog/

Watch the Conference videos:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com

The MLM Startup Conference in Las Vegas

MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies

Contact Us: REGISTER TODAY! 503-226-6600 or 800-231-2162

The next MLM conference will be held February 2014 in Las Vegas (keep a look out for the May and October
conferences as well). Each day will begin at 9:00AM and end at 4:00PM, when the one-on-time will begin and end
around 7:00PM. For more information visit: http://www.mlmlegal.com/srs2.html or call 800-231-2162/503-226-6600.
Registrations are taken by phone and questions are always welcome.

Presented by one of the most trusted individuals in direct selling and MLM, Jeffrey Babener, Editor of www.mlmlegal.
com
.

About Attorney Jeffrey Babener: Conference Host and Chairman, Editor of www.mlmlegal.com, as well as the
leading direct selling attorney in the United States – With over 25 years of experience as a direct selling attorney,
Jeffrey Babener has advised leading companies in the MLM/Direct Selling industry, ranging from Avon to Nikken, to
Herbalife, to Melaleuca, to USANA, and to Excel Communications, plus many more. He’s been published in national
magazines such as Money, Inc., Atlantic Monthly, Entrepreneur magazine, Direct Selling News, Direct Sales
Journal, Success magazine, Money Maker’s Monthly, among countless others. He’s authored several books,
including his most popular Network Marketing: What you should know. Mr. Babener has chaired more than 64
national conferences on direct selling.

Contact: Babener & Associates/MLMLegal.com
Telephone: 503-226-6600/800-231-2162
http://www.mlmlegal.com

Visit us at www.mlmlegal.com to learn more.

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Profile of the Leading MLM Law Firm – Babener & Associates and MLMLegal.com http://mlmlegal.com/MLMBlog/profile-of-the-leading-mlm-law-firm-babener-associates-and-mlmlegal-com/ http://mlmlegal.com/MLMBlog/profile-of-the-leading-mlm-law-firm-babener-associates-and-mlmlegal-com/#comments Tue, 05 Feb 2013 23:18:17 +0000 http://mlmlegal.com/MLMBlog/?p=358 This blog post is the companion post to the video Profile of a Leading MLM Law Firm – Babener & Associates. The following is the transcription of MLM Attorney Jeff Babener’s own words: Hi. I’m Jeff Babener, Chair of the … Continue reading

Visit us at www.mlmlegal.com to learn more.

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This blog post is the companion post to the video Profile of a Leading MLM Law Firm – Babener & Associates. The following is the transcription of MLM Attorney Jeff Babener’s own words:

Hi. I’m Jeff Babener, Chair of the Law Firm of Babener & Associates. Since I lecture and publish extensively, you have likely already visited our website: www.mlmlegal.com, which is one of the most frequently-visited websites on network marketing and one which we hope you find extremely helpful in starting your MLM or direct selling company. For the past 25 years, our law office has served as a key legal and business advisor to major companies like Avon, Shaklee, New Skin, ACM, Prepaid Legal, Longaberger, and Tupperware.

In fact, we’ve been right there at the beginning and actively involved in the creation of companies like Nikken, Excel, USANA, Melaleuca, and Legacy.

In addition, we have been actively involved in providing resources and support to companies like Quixtar, Creative Memories, and Mannatech. We represent many members of the DSA, and in fact, we even incorporated the MLMIA and served as their general counsel.

Although we are a full-service firm for MLM companies, we are direct selling specialists. We limit our clients strictly to MLM, direct sales, network marketing, and party planning companies. Much of our work is referred to us by small and large corporate law firms throughout the U.S. and other countries. We are an ultra-niche law firm and we have chosen to focus like a laser strictly on advising direct selling companies.

Although we have involvement with some well-established companies, which I’ve explained, our specialty is MLM startup.

Actually, all of the companies we helped to establish started with me on one side of a conference table and one of the individual founders – with high hopes – on the other. It may have been at our office. It may have been at one of the approximately 60 national conferences we have sponsored over the last two decades, entitled The Starting and Running the Successful MLM Company Conference. Or, it might have been after hearing me lecture at the University of Texas, the University of Illinois, or the University of Houston.

In the beginning, it was me sitting across the table from Frank VanderSloot of Melaleuca, or Tom Watanabe of Nikken, or Steve Smith and Kenny Troutt of Excel.

And, we are long term players. We brought Nikken to the U.S. from Fukuoka, Japan in 1990 and we have served as general counsel and their most trusted business advisor for 20 years, growing to represent the company in more than 40 countries.

Twenty years after Excel was sold to Wall Street for $1 billion, Steve Smith came back to us and said, “Jeff, let’s do this all over again. Let’s start another.” And we did.

Entrepreneurs come to us because we are far more than a law firm to them. We know this business. In fact, we probably know the business better than most of our clients. Over time, even though we are their lawyers, we tend to become their most trusted business advisors and member of their business team (via martin). And, usually more than 50% of our discussions are about successful operations and growth of their network marketing businesses, as opposed to mere legal issues.

As a courtesy, we often serve as their Keynote Speaker in support of our clients at major conventions. And, we have done so from Los Angeles to Nashville to Honolulu, and around the world, from Russia to China to Thailand. Our clients have used our credibility and reputation as a key asset in their growth.

We play an integral role on the legal and business front. For the startup company, we create all the documentation, agreements, policies, form language, etc. More importantly, we are intimately involved in the structure of the marketing program and the development of the compensation plan.

Our services involve trademarks, vendor agreements, labeling, FDA, sales tax; key relationships with founding distributors, medical or celebrity endorsements; administration of the distributor sales force in areas such as advertising, discipline, and communication; MLM registrations, regulatory compliance with the FTC, FDA, MLM statutes, postal, attorney general, and state consumer protection legislation.

In fact, both at the startup level and on an ongoing basis, not one piece of marketing material goes out that we don’t review and offer input. That includes all web and HTML copy, scripting, audio and video scripting, PowerPoint presentations, all hard copy and printed materials, web communication, and every other type of media.

Anything that will make its way to distributors, prospects, customers, and the public we’re involved in, and when we have created a great model, we help take our clients into international markets and around the world.

Everything we do in startup and long-term representation is driven by our number one goal, helping our clients be successful and stay in business. Our clients have our office number, home numbers, cell phone numbers, and private email addresses.

Unless we’re on a raft in a river canyon, we try to make ourselves always available. Expect to talk to us whether it is nighttime, or a weekend, or whether we are in Tokyo or Moscow or Beijing. As mentioned, we are long term members of a business team. We don’t know the meaning of “short term” relationships. We are looking for companies that intend to be successful and we intend to help make them successful.

If an MLM startup company is looking for this type of support then Babener & Associates is the right team partner for them. Please visit us at www.mlmlegal.com or call us at 503-226-6600.

For more information about the Law Office of Babener & Associates, visit our websites: www.mlmlegal.com and www.mlmattorney.com.

Or, visit these links for more information:

MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com Video

The MLM Startup Conference in Las Vegas Video

The Legal Issues of Starting and Running a MLM Company Video

What is the role of an Experienced MLM Legal Counsel? Video

Is a MLM Lawyer a Typical Lawyer? Video

How Does a Business Lawyer become a MLM Lawyer? Video

Jeffrey Babener’s Youtube Channel Reaches 60,000 Views Blog Post

CNBC.com Cites Legal Expert, Jeffrey Babener on FTC Business Opportunity Rule Blog Post

NEW PRESS RELEASE – 63rd Annual MLM Startup Conference! Blog Post

The Role of MLM Legal Counsel – Why Hire a MLM Attorney Blog Post

The Nine Basics You Need to Understand in Order to Succeed in MLM – Interview with Jeff Babener Blog Post

Interview with Expert MLM Attorney – How to Handle Compliance Discussions with your Distributors Blog Post

An Interview with Industry Expert and Advocate, Jeffrey Babener Blog Post

The First Essential Hire for MLM Startup Companies Blog Post

FTC v. BurnLounge: Lessons Learned for MLM/Direct Selling Blog Post

MLMLegal on Google+ Blog Post

MLM Legal Cases Page – New Page Blog Post

Do I Need to Register my Company in all 50 States? Blog Post

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home. HINT: Chose a category to narrow your search for discussion topics!

Find us on our social networks:

Google Plus: http://plus.google.com/u/0/115279960045099999909#115279960045099999909/posts

LinkedIn: http://www.linkedin.com/in/mlmlegal

Twitter: http://www.twitter.com/BabenerLawFirm

Myspace: http://www.myspace.com/mlmlegal

Facebook: http://www.facebook.com/profile.php?id=696968133

And, as always, visit MLMLegal.com, the best MLM resource on the web.The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21st and 22nd, 2013 we are hosting the MLM Conference for the 25th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our May and October conferences as well.)

Visit us at www.mlmlegal.com to learn more.

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D-Day: Direct Selling v. FTC http://mlmlegal.com/MLMBlog/d-day-direct-selling-v-ftc/ Tue, 26 Jun 2012 16:50:03 +0000 http://mlmlegal.com/MLMBlog/?p=147 A Resilient Industry Fights Back The assault was not on the beaches of Normandy, but nonetheless thousands of direct selling distributors and scores of direct selling companies scaled the cliffs of the FTC’s regulatory bunker to knock out the imminent … Continue reading

Visit us at www.mlmlegal.com to learn more.

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A Resilient Industry Fights Back

The assault was not on the beaches of Normandy, but nonetheless thousands of direct selling distributors and scores of direct selling companies scaled the cliffs of the FTC’s regulatory bunker to knock out the imminent threat to the direct selling industry, the FTC Proposed Business Opportunity Rule. In July, 2006, the mail room and internet repository of the FTC was inundated with letters and comments of thousands of individuals and scores of leading companies, representing 14 million home based-businesses that contribute $30 billion to the U.S. economy.

Along side the charge were detailed commentaries by industry professionals and experts, as well as trade groups such as the Direct Selling Association and the Multilevel Marketing International Association. Their message to the bureaucracy: the proposed FTC rule, although well-intentioned to protect the American consumer, misses the mark and, in fact, through onerous regulations, may well significantly impair the likes of Mary Kay, Tupperware, Shaklee, Quixtar, NuSkin, National Companies, Primerica, Herbalife, and so many other contributors to small business opportunities in America.

Major companies did not mince their words in requesting the FTC to withdraw its proposal: Mary Kay, “impractical, unnecessary and burdensome compliance requirements which would devastate our 43 year old company”; Avon, “overly broad and unduly burdensome”; Primerica, “The proposed Rule, if adopted, would cripple many direct selling businesses and would impair the livelihoods of millions of Americans who work in the industry.”

The Issues in a Nutshell

An excerpt from formal comments of Babener and Associates, legal advisor to many of the companies in the direct selling industry, filed with the FTC, echoes industry opposition to the FTC Proposed Business Opportunity Rule:

  1. The underlying assumptions regarding the size and scope of the direct selling industry and the adverse impact on the industry are grossly underestimated in the FTC staff report on the proposed rule.
  1. Requiring prospective sales recruits to wait seven days after a recruitment presentation to join a direct selling company will stifle recruitment in an industry that depends on an orderly development of a sales organization. A better approach would be to allow a seven day right of rescission, paralleling the FTC Cooling Off Rule.
  1. Requiring direct sellers to provide information and identity of 10 sales associates, in close geographic proximity to a prospective salesperson, will be a logistical nightmare and a dramatic invasion of privacy of those whose information is shared. The proposed disclosure lays a foundation for identity theft and, in an industry where the majority of sales people are women, the disclosure of their identity information to “strangers” creates unwelcome opportunities for sexual predators.
  1. Requiring direct sellers to release any information regarding prior litigation, whether or not at fault, is not only onerous and unfair, but creates an unwarranted stigma for legitimate companies involved.
  1. In the course of crafting a separate business opportunity rule, elimination of the historical $500 expenditure threshold for triggering applicability of the FTC franchise rule is inconsistent with state business opportunity legislation, FTC franchise rules, and causes direct selling companies with minimal investments to be subjected to onerous record keeping and disclosure rules that will become a major inhibitor of small business, a major contributor to the U.S. economy. In fact, after a few decades, in light of inflation, the threshold should be raised, not lowered.  In reality, as is the case today, the frauds and cheats will not bother to comply with the proposed rule and the burden and damage of the new bureaucratic rules will be borne by legitimate businesses.
  1. If the goal is to attack sleazy “fly by night” marketers of false and deceptive direct selling practices, a long line of FTC enforcement actions demonstrates that the FTC has the current authority, mandate and capability to attack fraudulent and deceptive practices.

What Next?  We will fight on the beaches…

The industry was forcefully heard in the thousands of well-articulated formal comments to the FTC. Congressional delegations have been briefed by industry representatives. A hearing and/or workshop process is projected to last 18 months to three years. The industry has called out “big guns.”  The most recently retired chairman of the FTC has been engaged by Primerica to lead a battle to convince the FTC staff to withdraw its proposed rule or dramatically modify the proposal to respond to industry needs. Industry experts, associations and professionals will dialog with the FTC staff. Industry associations, such as the DSA, have placed this issue as their number one priority. Industry representatives are extremely well prepared for any adversarial hearing process. Companies and trade associations are geared to challenge in court the legality and overreach of the proposed rule.

Obviously, no one can predict the outcome, but knowledgeable industry experts are optimistic that the end result will be quite workable for the industry. If all else fails, in a similar fashion to the health products industry response perceived overreaching by the FDA, which resulted in Congressional protection under DSHEA, the Dietary Supplement Health Education Act, the direct selling industry, through its companies, sales forces, lobbyists and numerous Congressional allies, will be prepared for “nuclear option,” remedial federal legislation in the event of the adoption of an unsatisfactory rule by the FTC. Although not beyond the realm of possibility, the FTC may withdraw its proposed rule or amend it before proceeding further. More likely, however, a combative process will occur during the near term. Until, and unless there is a modification in the existing rule, distributors and companies should clearly understand that “nothing has changed” that will affect their business.  A modest prediction: “things will work out okay in the end, but it will be a long process, perhaps years.”

PS. Although the formal comment period is over, individuals who wish to file comments with the FTC may still do so.  In fact, continued expression of concern by interested individuals cannot help but be heard by the staff at the FTC. FTC internet contact information can be found at www.ftc.gov.  The industry and the FTC are not enemies.  They both seek consumer protection, but the direct selling industry objects to unnecessary overregulation that can destroy an important channel of distribution.  Please follow ongoing updates and discussions on the status of the FTC Proposed Business Opportunity Rule at www.mlmlegal.com.

Visit these pages for the latest information on the direct selling industry and the FTC:

FTC v. BurnLounge: Lessons Learned for MLM/Direct Selling

FTC Guidelines on Endorsements and Testimonials
FTC Guidelines Resource Center
FTC Guidelines Endorsements and Testimonials: Detailed Analysis
FTC News Release on Endorsements and Testimonials
FTC Complete Guidelines Release
FTC Short Version Guidelines Release
FTC Examples of Material Connection
FTC Regulation of Advertising

FTC Proposed Business Opportunity Rule: Analysis and Updates:
The FTC Final Business Opportunity Rule: Still Work to Do
FTC Exemption Draft Falls Short … MLMLegal.com and DSA Suggest Revisions
FTC Exempts MLM from Proposed Business Opportunity Rule
DSA Position on FTC MLM Exemption Proposed Business Opportunity Rule
Analysis and Industry Response
Actual Text of Proposed Rule
FTC Speaks Out
DSA Speaks Out
DSWA Speaks Out
MLMIA Speaks Out
DRA Speaks Out
MLMLegal.Com Speaks Out

Or, watch the video: What is the Relationship between MLM and the FTC?

Visit us at www.mlmlegal.com to learn more.

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What do I do if my Company has heard from the FTC about Product Claims? http://mlmlegal.com/MLMBlog/what-do-i-do-if-my-company-has-heard-from-the-ftc-about-product-claims/ Tue, 15 May 2012 17:17:52 +0000 http://mlmlegal.com/MLMBlog/?p=60 Long ago, the federal government passed the FTC Act. The intention of the Act was to prevent deceptive practices in the marketing of products and services. The basic legislation was fairly straight forward and broad in its language. Since then, … Continue reading

Visit us at www.mlmlegal.com to learn more.

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Long ago, the federal government passed the FTC Act. The intention of the Act was to prevent deceptive practices in the marketing of products and services. The basic legislation was fairly straight forward and broad in its language.

Since then, the FTC has policed the commercial marketplace to examine claims about products made by marketers.  It makes no difference whether the claim is that you will make money in real estate, a potion you put hair in your hair, lose weight with an herbal supplement, or that you will save money on your gas bill. In all of these situations, the FTC examines whether or not a marketing practice and claim is supported by impartial substantiation and evidence.

If the FTC believes that support is lacking, it will request that the marketer modify its claims or make proper disclosures to explain what the typical consumer should expect of a product or service. The outcome of a matter may be resolved by a letter of assurance, by a consent agreement or by a consent settlement and judgment. If the FTC’s position is disputed, the FTC may even file suit in a federal court to enforce its position.

The bottom line is that an inquiry from the FTC is not to be taken lightly. Better yet, an MLM company should make sure that its product claims have adequate substantiation and evidence behind them and at least have sufficient evidence to avoid a knock on the door by the FTC.

For more information about the FTC’s guidelines visit mlmlegal.com’s FTC Guidelines on Endorsements and Testimonials Resource Center page.

The article “FTC Guidelines on Endorsements and Testimonials: Regulation of Advertising” may also prove helpful.

Or, watch the video What is the Relationship between MLM and the FTC?

Visit us at www.mlmlegal.com to learn more.

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