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.

Although Dr. Keep was called by the State of Kentucky as an expert witness to support the State’s case on pyramiding, the cross-examination, which focused on the credentials of Dr. Keep, revealed that Dr. Keep’s special area of focus was in the area of “retailing” and that his background and study in MLM/Direct Selling/Network Marketing was limited.

New Video Featuring the Cross-examination of Dr. William Keep by Lead Travelmax Trial Counsel, Jeffrey Babener

Although Dr. Keep was called by the State of Kentucky as an expert witness to support the State’s case on pyramiding, the cross-examination, which focused on the credentials of Dr. Keep, revealed that Dr. Keep’s special area of focus was in the area of “retailing” and that his background and study in MLM/Direct Selling/Network Marketing was limited. The cross examination and voir dire (examination as to credentials as an expert) covers a wide range of legal and business issues in the direct selling field. In the end, Dr. Keep did not claim to be qualified to testify either as to the legitimacy or illegitimacy of the Travelmax marketing program. The cross-examination appears in the following segments:

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial 1997 – Part One 

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Two

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Three

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Four

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Five

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Six

An Inside Look at a MLM Trial – Dr. William Keep – Travelmax Trial – 1997 – Part Seven

View all of these video segments by clicking HERE.

Visit www.mlmlegal.com and www.mlmattorney.com for more information and updates on the direct selling industry.

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 503-226-6600 or 800-231-2162 to register.

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.

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