The question below is taken from one of Mr. Babener’s client’s distributors’ Q&A pamphlets:
Q: Why do companies restrict the type of advertising carried on by their distributors?
A: Company rules regarding advertising are usually very detailed. Companies are zealous about protecting their trademarks. In addition, they want to avoid inappropriate claims about earnings opportunities or product properties, such as medical claims. The rights of the distributor and the network marketing company are determined by their contract, and specific restrictions on advertising are contained in the distributor agreement and the company’s policies and procedures.
For additional information on advertising and the network marketing industry, visit the following links:
“FTC Guidelines on Endorsements and Testimonials- Regulation of Advertising” Article
“Chasing The Competition” Article
“FTC Guidelines on Endorsements and Testimonials – Resource Center” Article
“FTC – Regulation of Advertising” Article
FTC Endorsement Guidelines Impact MLM/Direct Selling Blog Post
“MLM Startup – The Basics” MLM Corporate Startup Essentials
Comparative Guidelines for Advertising
What is the Relationship between MLM and the FTC?
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