Category: Social Selling

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.

Once again, the Federal Trade Commission (FTC) has sent out a round of letters to a new list of MLM companies warning them to stop their field from posting that their products can cure the Novel Coronavirus/ SARS-CoV2.They are giving the companies 48 hours to prove they have put actions into place to address their concerns. These posts include mentions of eliminating vaccines, boosting immunity, using a stimulus check to make more money, and much more.

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.

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.

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 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.

Momentum Factor CEO Jonathan Gilliam was recently featured in a MLM.com podcast to provide his thoughts about compliance challenges, reputation issues, and what direct selling companies can do to train their distributors, shape their culture, prevent illegal claims and avoid damage to their online reputations.

The following is an informative guest post from Attorney Kevin Thompson about the tough balance skin care companies must address in distributor marketing and compliance. 

Anyone who has worked in legal or compliance for a direct selling company understands the incredible challenges presented online.  As networkers increasingly use the Internet to promote their businesses, companies are at more risk every day from uncontrolled or unmonitored claims by the field, often to disastrous effect.

FieldWatch, the world’s premier solution for direct sales compliance, now offers a unique approach for group monitoring and enforcement in its latest release.