Category: Regulatory News

The Federal Trade Commission (FTC) has put more than 1,100 businesses, including many direct sales companies, on notice that if they deceive or mislead consumers about potential earnings, the agency may use its authority to target them with large civil penalties.

By successfully utilizing Section 19 of the FTC Act, the Federal Trade Commission has found a new avenue to restitution after Section 13(b) was vacated by the Fifth Circuit. An article from JD Supra details this important development.

Regulatory action is on the rise as the U.S. Food and Drug Administration and the Federal Trade Commission are coordinating consumer protection efforts.

The FDA and the FTC posted warning letters to 10 companies for illegally selling dietary supplements that claim to cure, treat, mitigate, or prevent diabetes, in violation of the Federal Food, Drug, and Cosmetic Act (FD&C Act).

Although the Federal Trade Commission (FTC) was dealt a blow from the Supreme Court's ruling on Section 13(b), the commission is not sitting idle following the decision. Instead, the FTC has gone on the offensive with new measures in order to obtain monetary relief for perceived consumer injury. Read more about their efforts in this article from KelleyDrye.

HUGE news in the direct sales industry. With its unanimous ruling, the Supreme Court is essentially declaring that the Federal Trade Commission (FTC) has abused its power for decades. A thorough rebuke.

The FTC has announced that the agency is creating a new and dedicated “rulemaking group,” a move that would strengthen the FTC's ability to invoke civil penalties outside its historical use of 13(b).

The Federal Trade Commission (FTC) together with federal, state, and local law enforcement partners announced Operation Income Illusion, a nationwide crackdown on illegal income claims.

BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC), in partnership with the Direct Selling Association (DSA), today released new Guidance on Earnings Claims that defines and identifies earnings claims to ensure all representations made by direct-selling companies or members of their salesforce comply with legal and self-regulatory standards.

The 8-1 decision is a victory for the federal government and its power to "disgorge" money from those who obtained it illegally.