Category: Regulatory News

The Federal Trade Commission (FTC) today announced it has sent 10 letters warning multi-level marketing companies (MLMs) to remove and address claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both.

A federal court granted the Federal Trade Commission’s (FTC) request to temporarily shut down an alleged pyramid scheme known as “Success By Health,” and to freeze the assets of the company and its executives.

In a case that is sure to reverberate across the direct selling industry, AdvoCare and its former CEO are required to pay $150 million in fines for allegedly operating a pyramid scheme. Join Momentum Factor's CEO Jonathan Gilliam and prominent direct selling attorney Spencer Reese on October 9 for a webcast as they provide you concrete steps to protect your company from what could be a new FTC approach to the industry.

The bottom line for direct sellers is that if the Federal Trade Commission (FTC) loses its 13(b) authority, it loses its punch. Legitimate direct selling companies do not fear squaring off against the FTC so long as they are not blind-sided.

For the first time in direct sales history, a truly independent self-regulatory body has been created to enforce social media and marketing rules among all direct selling companies, and their independent sales force. Join Momentum Factor's CEO Jonathan Gilliam and DSSRC Executive Director Peter Marinello for a lively webcast conversation on April 4th about how your company can stay out of hot water with this powerful new enforcement entity.

Momentum Factor CEO Jonathan Gilliam recently interviewed Peter Marinello, Executive Director of the Direct Selling Self-Regulatory Council (DSSRC) to learn how the program will impact the compliance function of direct sellers.

Esquire delves into moves made against retailers that sell CBD-infused products in New York City, Ohio, and Maine.

Last August, Social Selling News reported on the U.S. Direct Selling Association’s (DSA) announcement of the formation of a new self-regulatory body that would monitor and act upon all companies identified as direct sellers and multi-level marketers, whether or not they are members of the industry association. The entity is now live and has a name: the Direct Selling Self-Regulatory Council (DSSRC).

As we approach the deadline for putting GDPR compliance in place, our team at Momentum Factor is receiving more questions about our interpretation of the regs, what we’re doing about it, and what our clientele can do to protect against regulatory risk in the EU.

Multi-level marketing is a diverse and varied industry, employing many different structures and methods of selling. Although there may be significant differences in how multi-level marketers sell their products or services, core consumer protection principles are applicable to every member of the industry. The FTC staff offers this non-binding guidance to assist direct sellers and MLMs in applying those core principles to their business practices