Category: Regulatory News

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

The fact that legal challenges can have devastating consequences for direct selling firms does not come as news to veterans of the industry. Fortunately, our experts interpret recent legal challenges as reminders of the necessity of rigorous, up-to-date compliance and practices and policies, not as omens of a regulatory sea change. Class action litigation will force companies to continue to examine their business practices to ensure that they are in compliance with current FTC directives.

The US FDA on Tuesday announced sending 14 warning letters and four online advisory letters to companies selling dozens of products that claim to cure, diagnose, treat or prevent cancer.

Federal Trade Commission Chairwoman Edith Ramirez said in an interview with The Washington Post that she will soon step down as head of the country's most powerful consumer watchdog, after serving more than three years in the role and another three years before that as a commissioner.

More than two months after news broke of a potential settlement, Friday marked the release of the FTC’s Final Order against Vemma and founder BK Boreyko. Despite some exacting standards, Vemma’s ability to conduct business remains intact.

The sixteen-month long lawsuit between the Federal Trade Commission and Vemma Nutrition Company has come to a negotiated resolution under terms which will allow Vemma to continue operating its business under restrictions similar to those contained in a federal court preliminary injunction entered against the company last September

Attorney Kevin Thompson provides an early analysis of the FTC settlement with Herbalife in this special guest blog post.

Following is a guest post from attorney Spencer Reese with an early analysis of the FTC settlement with Herbalife.