MLM Law in 50 States – MLM, Network Marketing, Direct Selling News, Videos, Articles, Legal Updates, and More. https://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 MLMLegal.com has a New Face! https://mlmlegal.com/MLMBlog/mlmlegal-com-has-a-new-face/ Wed, 06 Jan 2016 22:16:31 +0000 http://mlmlegal.com/MLMBlog/?p=1067 How long has it been since you’ve visited MLMLegal.com? Are you someone who’s been visiting our website for years? You’ll be surprised to see that we’ve given MLMLegal.com a new face! And we are working on updating more pages throughout … Continue reading

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

]]>
How long has it been since you’ve visited MLMLegal.com? Are you someone who’s been visiting our website for years? You’ll be surprised to see that we’ve given MLMLegal.com a new face! And we are working on updating more pages throughout 2016!

New MLMLegal.com HomepageAs you can see, a new and easy-to-use navigation bar helps visitors easily find what they are looking for, whether it be the blog, articles, videos, MLM resources, conference pages, or one of the many other resources we have on our website for direct sellers.

The main homepage image was provided by expert MLM Attorney himself! Jeff Babener! While on a trip to Europe. These beautiful mountains provide us with the metaphor “Let Us Be Your Guide.” Let the Law Office of Babener and Associates, MLMLegal.com, guide you through the sometimes difficult MLM industry and its legal climate. As experienced network marketing attorneys, who have been in the industry for three decades, and who have represented companies such as Melaleuca, Avon, Herbalife, NuSkin, USANA, Nerium, Excel, and Team National, we have the experience and credibility to help you navigate the direct selling industry.

Let us be your guide through the education we provide throughout our website in the form of articles, videos, and MLM resources. Or, let us be your guide in helping you start or run your direct selling company; we advise in all of the legal aspects of starting up or running MLM, network marketing companies.

New MLMLegal.com HomepageOur new homepage offers you quick and easy-to-find links so that you can easily contact us, request a free MLM Startup Manual, gather information regarding our next MLM Startup Conference, or subscribe to our new newsletter, MLM News Global.

The new MLMLegal.com homepage still features new content, this time under its own, clearly-outlined section.

New MLMLegal.com HomepageScroll down some more to find exactly what you were looking for, such as the free MLM Startup Manual. The articles inside are clearly outlined for you. And, you can click the image or the text links to be taken to the online form request page.

What else is important?

New MLMLegal.com Homepage

A scrolling carousal provides you with images taken of past conferences and directs your eye and mouse directly to the page where you can find out when the next conference takes place.

And now, you can find all of Jeff Babener’s videos (over 100!) in one location, the homepage!

New MLMLegal.com Homepage…Right along with Mr. Babener’s most popular industry articles!

New MLMLegal.com HomepageAnd don’t forget about the rest of the MLM, network marketing, direct selling content on MLMLegal.com! The Law Library is where you can find all of Mr. Babener’s articles, federal and state cases, MLM law in 50 states, MLM business articles, IRS 911 Publication, and so many more article index pages that can be easily navigated.

Hint: Each new webpage now has related video and page content at the end of each webpage.

New MLMLegal.com HomepageAs does our new homepage! The end of each page has links to related material, or other related pages that we suggest that you visit while you’re here! On the homepage, we suggest that you visit the MLM Startup Conference page, request a FREE copy of the MLM Startup Manual, and visit our Contact Us page.

New MLM Legal HomepageAnd finally, at the bottom of the pages at our new website are links to our social networking pages! Follow us on Twitter! Friend us on Facebook! Like our Facebook page! Visit us on LinkedIn or Google+! There are lots of easy ways to stay in touch with us and now we’ve made it easy for you to find us online!

We thought a lot about you when redesigning our new website. We hope you find it more manageable yet still famous for being full of lots of useful content!

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 February 25 & 26, 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.

]]>
New Press Release: MLMLegal.com and Babener & Associates Announces Its 69th National Starting and Running the Successful MLM Company Conference https://mlmlegal.com/MLMBlog/new-press-release-mlmlegal-com-and-babener-associates-announces-its-69th-national-starting-and-running-the-successful-mlm-company-conference/ Tue, 06 Jan 2015 21:38:24 +0000 http://mlmlegal.com/MLMBlog/?p=904 The Network Marketing Conference Will Be Held February 26 & 27, 2015, Which Is Quickly Approaching LAS VEGAS, NV — (Marketwired) — 01/06/15 — For more than 28 years, leading industry experts have educated the executives of starting and existing … Continue reading

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

]]>
The Network Marketing Conference Will Be Held February 26 & 27, 2015, Which Is Quickly Approaching
Join us for the first MLM Startup Conference of 2015!

Join us for the first MLM Startup Conference of 2015!

LAS VEGAS, NV — (Marketwired) — 01/06/15 — For more than 28 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 February 26 & 27, 2015 in 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 (via james). 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.”

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.

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

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.

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

]]>
Tennessee Recognizes Personal Use in New Legislation https://mlmlegal.com/MLMBlog/tennessee-recognizes-personal-use-in-new-legislation/ Thu, 10 Jul 2014 18:13:08 +0000 http://mlmlegal.com/MLMBlog/?p=874 On July 1st, 2014, Tennessee became the latest government/regulatory entity to adopt updated MLM/Pyramid legislation recognizing “personal use” in pyramiding analysis. The Tennessee language is similar to language adopted in more than a dozen state statutes, which recognizes personal use, … Continue reading

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

]]>
On July 1st, 2014, Tennessee became the latest government/regulatory entity to adopt updated MLM/Pyramid legislation recognizing “personal use” in pyramiding analysis.

The Tennessee language is similar to language adopted in more than a dozen state statutes, which recognizes personal use, so long as it is coupled with consumer safeguards to avoid inventory loading and to provide for a reasonable inventory repurchase policy. In 2014, the state of Tennessee adopted such a pyramid test:

(8) “Pyramid promotional scheme”:

(A) Means any plan or operation by which a participant gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other persons into the plan or operation rather than from the sale and consumption of goods, services, or intangible property by a participant or other persons introduced into the plan or operation; and

(B) Includes a plan or operation under which:

…. (ii) A participant, on giving any consideration, obtains any goods, services, or intangible property in addition to the right to receive compensation.

(C) Nothing in this part may be construed to prohibit a plan or operation, or to define a plan or operation as a pyramid promotional scheme, based on the fact that participants in the plan or operation give consideration in return for the right to receive compensation based upon purchases of goods, services, or intangible property by participants for personal use, consumption, or resale so long as the plan or operation does not promote or induce inventory loading and the plan or operation implements an appropriate inventory repurchase program.

(House Bill 2356 approved by the Governor, April 25, 2014 and effective July 1, 2014)

For the complete language of the new Tennessee legislation, visit the Tennessee Statute page located at MLMLegal.com’s MLM Law in 50 States section.

In the last 10 years, distributor personal use, as a legitimate end destination for product/service has been increasingly recognized by courts, legislatures and regulators:  In 2013 and 2014, two EU tribunals; now counting, more than a dozen U.S. states have amended MLM statutes; in 2004, an FTC advisory opinion applauded efficiencies of MLM “buying clubs”; even the most recent U.S. Ninth Circuit Court of Appeals decision, BurnLounge, recognized personal use purchases that were not merely incidental to the business opportunity. The emerging legal standard, legitimate vs. pyramid, is not the existence of personal use, but rather, whether the predominant motivation for distributor expenditure is to qualify for reward in the MLM program as opposed to purchase for personal use or resale.

Read Tennessee State Law at our website.

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.

]]>
What is “Front Loading” or “Inventory-Loading?” https://mlmlegal.com/MLMBlog/what-is-front-loading-or-inventory-loading/ Tue, 30 Jul 2013 20:06:52 +0000 http://mlmlegal.com/MLMBlog/?p=616 Front loading is when a MLM company requires a consultant to purchase an unreasonable amount of inventory that cannot realistically be resold and/or used within a reasonable amount of time. Apart from general pyramiding accusations, the direct selling industry can … Continue reading

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

]]>
Front loading is when a MLM company requires a consultant to purchase an unreasonable amount of inventory that cannot realistically be resold and/or used within a reasonable amount of time.

Apart from general pyramiding accusations, the direct selling industry can learn from the Federal Trade Commission’s (FTC) specific allegations of improper activity. The FTC includes front loading as inappropriate activity stating:

Front-loading or inventorying of product in which excessive product purchases are viewed as prohibited consideration for the requirement that individuals make an initial investment of product purchased to engage in the opportunity.

In the August 1999 case FTC v. Equinox the FTC accused the company of making recruits engage in the following inappropriate front loading activity:

New recruits were front-loaded with $5,000 inventory purchases by being encouraged to “buy-in” at the managerial level.

MLM marketing plans which result in inventory loading distributors should be taken very seriously and avoided. Here are five ways to tell if the direct selling company you are considering joining is reputable or perhaps may be operating as a pyramid scheme:

  • Promotions where the business opportunity is the “product.” If there is no legitimate product or service being sold, but only the opportunity itself, then chances are that the promotion is a pyramid scheme.
  • Products that are sold at inflated prices. Sometimes pyramid promoters try to mask their true intent by selling a product. Often, the product will be vastly overpriced and thus unlikely to generate much retail activity, thereby indicating that the real item being sold is the compensation plan.
  • Programs that require inventory “loading.” A legitimate MLM opportunity doesn’t require you to buy unreasonable amounts of inventory to begin your business.
  • Programs that require substantial initial cash investments. According to MLM Attorney Jeff Babener, many states consider a required up-front investment of $500 or more to be “substantial” and thus likely to attract the attention of law enforcement.
  • Programs that require mandatory purchase of peripheral or accessory products or services. Some pyramids seek to hide their true face by allowing a minimum price for a “start-up” kit and then compelling the investor to buy more expensive items such as training or demonstration materials. Jeff Babener believes that business-start-up kits and selling aids should be sold at company cost.

For more information on front loading, visit www.mlmlegal.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Myspace

Facebook

Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call Charity before September 1st to receive a discount! 503-226-6600 or 800-231-2162.

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

]]>
The Origin of State Regulation and the Current Direction of State Regulation https://mlmlegal.com/MLMBlog/the-origin-of-state-regulation-and-the-current-direction-of-state-regulation/ Wed, 31 Oct 2012 18:34:02 +0000 http://mlmlegal.com/MLMBlog/?p=266 Individuals in the MLM, network marketing, direct selling industry often express an interest in knowing the origin of state regulation and in understanding the current state of regulation in regards to direct selling. Industry regulation followed in the aftermath of … Continue reading

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

]]>
Individuals in the MLM, network marketing, direct selling industry often express an interest in knowing the origin of state regulation and in understanding the current state of regulation in regards to direct selling. Industry regulation followed in the aftermath of the 1960s pyramid schemes of Dare To Be Great, a program in which recruits paid $5,000 to attend a seminar where they were taught to recruit others to pay $5,000 and so on. The program was shut down by state and federal regulators.  Prior to that time, we saw pyramid schemes regulated by securities laws, but after Dare To Be Great most states adopted pyramid laws. 

State pyramid laws are rather ambiguous; however, they made it illegal for companies to require distributors to pay a consideration for the right to go out and recruit others. They also made it illegal when remuneration was based on just the movement of money. The statutes are fairly broad and we’ve seen considerable litigation over time.

We have worked with attorney generals across the country for more than 25 years. What we have seen is the development of the understanding and acknowledgement that direct selling is an important industry. It’s an industry that involves more than 15 million people, doing more than $30 billion in sales, and we have many stellar success stories in our industry, from Primerica to Avon, from Herbalife to Pampered Chef, and so the states have began working with the industry.

As a matter of fact, in the 1990s and in the early 2000s, when the industry was facing pressure from the Federal Trade Commission (FTC) on the issue of personal use, one state after another, at the request of the industry, has modified its MLM and pyramid statutes to recognize personal use by distributors of products as a legitimate end destination of products and not a part of some elaborate pyramid scheme. The industry views this as “extraordinary cooperation” by state governments, and for the most part right now, enjoys a very good and continuously-improving relationship with state governments.

For more information on state regulation, visit MLMLegal.com, where you can read about MLM Law in 50 States. Or, view the companion video to this blog post: What is the Direction of State Regulation of MLM?

And as always, visit mlmlegal.com, the best MLM resource on the web.

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

]]>
MLMLegal.com on iTunes https://mlmlegal.com/MLMBlog/mlmlegal-com-on-itunes/ Mon, 13 Aug 2012 20:47:52 +0000 http://mlmlegal.com/MLMBlog/?p=213 MLMLegal.com, hosted by MLM Attorney Jeffrey Babener of Babener & Associates Law Office, is now on iTunes. Download the MLMLegal.com application to access MLM law in 50 states, hundreds of MLM company profiles, MLM legal updates, network marketing videos, and … Continue reading

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

]]>
MLMLegal.com, hosted by MLM Attorney Jeffrey Babener of Babener & Associates Law Office, is now on iTunes. Download the MLMLegal.com application to access MLM law in 50 states, hundreds of MLM company profiles, MLM legal updates, network marketing videos, and notable direct selling legal cases, and much more on your smart device.

To preview the documents, visit MLMLegal.com’s profile page here. Or visit MLMAttorney.com to read more about it.

All of the iTunes application documentation can also be viewed via the world wide web at www.mlmlegal.com and www.mlmattorney.com.

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

]]>