Category: Feature Articles

The FTC's record MLM settlement shows why direct selling companies need automated compliance monitoring to catch earnings claims and false sales reporting.

As the result of an immense compliance burden that is only intensified by budgetary pressures that limit full-time staff increases, companies must now find alternate ways to bolster and support their compliance teams in order to avoid significant risks and penalties. That is why effective remediation services have now become critical for business success.

Be sure to catch FieldWatch General Manager Lauren Poel's recent article on the future of direct selling oversight that is featured in the March/April issue of DSN.

The regulatory climate around direct sales never slows down and is always shifting. With that being said, what are the compliance and regulatory hot button topics direct sellers should be aware of right now? Explore these topics in Jonathan Gilliam's recent DSN article.

The direct selling industry thrives on personal connection and entrepreneurial spirit, but today’s landscape demands reinvention. Shifting consumer behaviors, regulatory scrutiny, and the Amazon-driven expectation for fast, seamless shopping have forced the industry to evolve.

In the evolving landscape of direct sales, the necessity of a robust compliance program cannot be overstressed, particularly in light of recent interactions between regulatory bodies and consumer advocacy groups.

Go ahead, Google the name of your company now. I’ll wait. With direct sales continuing to move toward more of an online model, it’s never been more important to protect your company’s online reputation.

With the expansion of culture through social media in just the last 10 years, social selling is no longer a young person’s game. It is now almost a requirement for every direct selling company to harness the power of social media selling and pave the way to creating meaningful digital connections in order to be successful. 

It can be demoralizing to have compliance constantly reaching out to correct claims that a seller assumed were just fine. Yes, monitoring is essential as you do not want your field to be easy target for regulators to put your company at risk.  So how do you monitor, keep the field happy and prevent future infractions at the same time? The answer is education through compliance training.

Unauthorized sellers battle with companies for consumer dollars, and customers look for the quickest, cheapest way to get the product on their doorstep. This severely impacts a direct seller's bottom line and, most importantly, hurts the field, as they often cannot compete with the cut-rate prices found online.