Have you seen or heard a direct selling company say something like, “Make $10,000 a month!” or “Guaranteed income of $2,000 weekly!”? Well, these are a couple of examples of unauthorized earnings claims. So, what is legal to tell your distributors about how much income they’ll make? Read (or watch!) what expert MLM Attorney Jeff Babener has to say in this video:

MLM companies and direct sellers are among the biggest sellers of health and cosmetics products in the world. Some of the largest companies are traded on the NYSE. Because of concerns about safety of its customers, as well as FDA and FTC regulatory scrutiny of labeling and product claims, MLM companies expend tremendous financial and professional resources to remain compliant with rules promulgated by the FDA for marketing of health, cosmetic and personal care products. The FDA publishes extensive guidelines for product claims. In the dietary supplement area, Congress has instructed the FDA on such guidelines with DSHEA, the Dietary Supplement Health Education Act of 1994. And, even, with DSHEA exemptions for substantiated “structure function claims”, any claims in the nature of therapeutic treatment of actual medical conditions, are prohibited. And if such claims are made, the products may be removed from the over the counter market as unapproved “drugs”. In addition, the FTC and most states, under deceptive claims laws, prohibit unsubstantiated or misleading claims about products.   MLM companies, in turn, publish extensive compliance guidelines for distributors as to what may be represented or prohibited, by way of “unauthorized product claims” in the marketing of products. Companies take this issue quite seriously, as inappropriate product claims that trigger regulatory action create a risk for the opportunities of all distributors as well as companies.

MLMLegal.com is bustling with educational content for direct sellers and startup/existing MLM companies! Be sure to visit us often!

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

Sign up for the MLM News Global newsletter for top headlines, news stories, scam alerts, videos, articles, and more information on the network marketing industry.

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

What do you do when you need answers on the go? MLM Legal now offers a free iTunes application.

MLMLegal.com is one of the most informative and reliable websites about network marketing on the web. MLM Legal provides educational articles answering common industry questions, such as:

–          How to start a network marketing company

–          An inside look at a MLM trial

–          Herbalife and personal use

–          How to identify a pyramid scheme

–          How to analyze compensation plans

–          And, many more.

MLM Legal offers over 70 videos where MLM expert Jeff Babener discusses network marketing for both consultants and company owners. The website offers research assistance by providing over 700 MLM company profiles, a vendor and supplier directory, and the latest industry news. MLM Legal also offers free materials to those who qualify, including a free MLM Startup Manual, an insightful DVD, and newsletters.

MLM Legal is free and open to anyone, anytime. However, what do you do when you need answers on the go? MLM Legal now offers a free iTunes application. This application offers up-to-date information on the direct selling industry, news and headlines, frequently asked questions, MLM law in 50 states, hundreds of articles, notorious MLM cases, as well as legal news and articles written by Jeff Babener.

MLMLegal on iTunes is free and will provide you with valuable information on the go. Download the free iTunes app 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

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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

People often ask me “Are you a typical lawyer?” Most lawyers are viewed as people who sit in an office, draft contracts and argue cases in the courtroom all day. The answer is NO, we are not typical lawyers. We probably know more about multilevel marketing than most of our major clients that have been in the industry for years. We bring that knowledge to bear as we work with our clients and as they develop their business models. More than half of the discussions we have with our clients are about the MLM business itself as opposed to just purely legal issues. This gives us the opportunity to be challenged, which we welcome and we enjoy.

It is true that the hat we wear is “legal advisor” to many of the leading direct selling companies and startup mom and pop companies. Formally, we are their legal advisor; however, we are also a vital part of their business team. We greatly enjoy the many hats we wear in the direct selling industry.

For more information about MLM Attorney Jeff Babener, visit www.mlmlegal.com or www.mlmattorney.com.

The following links may also prove helpful:

Babener and Associates

Scope of Services

Experience Counts

Business Background

Biographical Profile

MLM Blog by Jeff Babener

Free MLM Startup Manual

MLM Startup Conference

Free DVD Full of MLM Advice

Comprehensive Index of Articles

The MLM Business

MLMAttorney.com Blog

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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 will be here before you know it! On May 16^th and 17^th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64^th 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 October and February conferences as well.)

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

Here are the videos Attorney Babener offers for free on his website(s) and at his Youtube channel:

Earnings Claims and Consumer Protection Laws
 Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes NEW!
The Difference Between MLM Earnings Calculators and Earnings Claims
From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM
Compliance Guidelines for Direct Selling Companies and Network Marketers
Factors that Make a MLM Company Successful
A View of the Direct Selling Industry: Past, Present and Future
Why Choose the MLM Model for Your Business? – A CEO Interview
MLMlegal Releases New Film on MLM Startup Conference – Produced by Networkingstar.com
The MLM Startup Conference in Las Vegas
 Jeffrey Babener: Company and Distributor Training on the MLM Industry
Understanding the Basics in Order to Succeed In Direct Selling
Recruiting Advice from an Industry Expert
How to Tell if a Company is a Pyramid or a Legitimate MLM
 Profile of a Leading MLM Law Firm – Babener & Associates
In Order to Achieve Success in MLM, One Must Have Passion, Patience, Persistence
Raise Capital in Order to Recruit Key Distributors
Creating Clear Agreements Between Company Owners
Role of Compensation Plan in a Successful Direct Selling Company
MLM Startup Conference – A Must for Executives of Startup and Existing MLM Companies
Choosing the Right Product for Your MLM Company
You Must Possess or Buy MLM Experience
Choosing the Right MLM Software and Technology for your Direct Selling Business
The Legal Issues of Starting and Running a MLM Company
MLM Startup Tips, Educational Resources, Answers to Network Marketing Questions
Learn What is Needed to Recruit Top-Selling Distributors
How Important is Your Company Name? Learn about Trademarking Your Company Name
 An Introduction to Direct Selling and the Basics of MLM
The Major Players – Successful MLM Companies
The Legal Issues of Starting and Running a Direct Selling Company
Success Stories in the MLM, Direct Selling, Network Marketing Industry
Technology’s Impact on the Direct Selling Industry: The History of Technology
Not all Direct Selling Companies are Pyramid Schemes
Debunking Direct Selling Industry Myths
The Internet‘s Effect on Direct Selling and the Future of MLM
Is the Compensation Plan the Driving Force of Success?
What are the Top Two Reasons why MLM Companies Fail?
How Important Is Recruiting to MLM Company Success?
What is Importance of Merchant Account/Payment Solutions Processing?
Who are the first key Hires for a MLM Company?
Do We Start Local or Go National Immediately?
What is the Driving Force of Success for a MLM Company?
Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?
Has Corporate America Discovered the MLM?
What is MLM History with the Government?
Should a MLM Company go International immediately?
Is the MLM Industry “for real” in the Business World?

You can find these videos as well at MLMLegal.com and MLMAttorney.com.

Followers of Jeff Babener and his websites (MLMLegal.com and MLMAttorney.com) have often asked if we record video of the MLM Startup Conference (a conference we’ve been hosting for over twenty years; which brings together the executives of direct selling companies and MLM industry experts to assist in the starting and running of MLM companies). Mainly because many people are not able to attend the in-person event. Well, for the next MLM Startup Conference taking place February 2013, we plan to film the event and offer clips of the conference online!

We are sure that many people will be happy to hear about this; however, nothing will compare to quite the same to actually attending the event in Las Vegas. Attendees get to spend one-on-one time with each speaker; a priceless opportunity for anyone who is looking to start a MLM company. We hold the conference three times per years; February, May, and October in Las Vegas. Call 800-231-2162 or 503-226-6600 to register. And, visit our blogs‘ “conference” categories to learn more at any time.

Be sure to check MLMLegal.com and MLMAttorney.com often as we are continuously adding valuable information about the direct selling industry to our websites.

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

CNBC – January 9, 2013

In his article, Commentator Greenberg discussed the effect lobbying dollars spent by the Direct Selling Association (DSA) and Herbalife assisted in the exclusion of consultants from the Business Opportunity Rule, enacted by the Federal Trade Commission (FTC).

Attorney Babener’s (editor of www.mlmlegal.com and www.mlmattorney.com) widely read article titled “The New FTC Business Opportunity Rule – MLM/Direct Selling Exemption Recognized” was quoted saying:

In March 2012, the direct selling industry has occasion to celebrate what a united industry, companies and distributors, can achieve if everyone pulls oars together in the same direction. The fruits of their labor are apparent in a newly-forged, positive relationship with the primary federal agency that regulates a channel distribution…”

He added: “In its final FTC Business Opportunity Rule, the FTC stated its clear intention to relieve companies and distributors from what might have been very onerous conditions of recruitment that would have dramatically impaired the ability of distributors to build their businesses.

Jeff Babener’s positive impact on the direct selling industry is widespread. His comments on the proposed FTC Rule were cited several times in the FTC Staff Report, and his efforts, along with many others in the industry, contributed to the FTC decision to effectively exclude MLM, Direct Selling, and Network Marketing Companies, and their millions of distributors, from potentially onerous impact on the Direct Selling Industry.

See his comments to the FTC: FTC Proposed Business Opportunity Rule: MLMLegal.com Speaks Out.

To read more about the Proposed Business Opportunity Rule, visit the following links:

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

What is the Relationship between MLM and the FTC? Video

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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.

Next MLM Conference in Las Vegas is February 21 & 22, 2013! Call 800-231-2162 to register today!

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

We have been direct selling attorneys for more than 25 years and having worked with hundreds of companies, having worked in the industry over decades, having worked in markets in the U.S. and abroad, having lectured at conventions, and having worked with distributor advisory boards, we bring the “big picture” to our clients. We often find ourselves playing a role as part of a business team with our clients. We are an important part of the business team and sometimes we become the most important business advisor for our clients. Often times, our clients conclude that perhaps we know more about the MLM business than they do. Therefore, we bring something unique to the table. We are a legal advisor and yet we play a positive role. When I say the term “positive”, I mean that 99.99 percent of the things that we do are positive as opposed to reactive to negative events.  If all we did is sit around all day drafting contracts, I probably would have left this discipline long ago. What we take pride in, and what we enjoy, is being part of something positive and growing companies from zero to $1 billion then taking them around the world.

(Comments from Direct Selling Attorney Jeff Babener.)

For more information, watch the companion video to this blog post: What is the role of an experienced MLM Legal counsel?

And, for additional information about the Law Office of Babener & Associates, visit www.mlmlegal.com.

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