Category: Regulatory News

Every time a direct seller has an issue with the Federal Trade Commission (FTC), critics of the industry are quick to jump on it, hailing it as a step in the right direction towards shutting down multi-level marketing completely. They’ll say that it is finally being outed as an unsustainable business practice — that they’re all just pyramid schemes in disguise.

In the wake of recent FTC actions, a new pattern of consumer protection action has emerged: companies who go too far in their marketing or give the appearance of an anti-consumer bias may be putting their companies at great risk.

Judge John J. Tuchi yesterday amended his temporary restraining order in the Vemma case – and it has HUGE ramifications for direct sellers. Join us on Tuesday, September 22 at 1 pm Central for a critical update webcast to discuss these important industry developments.

A federal judge has dismissed a lawsuit accusing Herbalife Ltd. and its chief executive officer of misrepresenting the weight-loss and nutritional products maker's sales practices as legitimate when the company was "at its core" a pyramid scheme.

The FDA says it wants input on whether it needs to do more to ensure that remedies are safe and effective. This article from The Washington Post examines the desire of the FDA to revisit its oversight on homeopathic products.

According to an article from Fortune, federal investigators are looking into whether people, including some hired by William Ackman, made false statements about the Herbalife’s business model to regulators.

Join us for a hands-on update on what your company can do to protect itself when it comes to online compliance as Momentum Factor Founder & CEO Jonathan Gilliam presents at the 2014 Direct Selling Association (DSA) Global Regulatory Conference in Washington, D.C. on October 15-16.

Herbalife shares jump after company hires former FTC commissioner who promises increased policing and enforcement according to this article from The Los Angeles Times.

On Monday, the FDA delivered official "warning letters" to senior executives at two major direct selling companies, citing online health claims by distributors of these organizations both based in Utah.

Herbalife receives a Civil Investigative Demand from the US Federal Trade Commission.