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MLM / Direct Sales Updates

Read MLM/Direct Sales Law updates, articles, and legal commentary from leading lawyers and law firms:
BakerHostetler

FTC Releases Staff Report on Multi-Level Marketing Income Disclosures

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The staff of the Federal Trade Commission (FTC) recently issued a report that contains the staff’s findings from its review of disclosure statements from 70 multi-level marketers (MLMs). The report is just the latest in a...more

Kelley Drye & Warren LLP

FTC Staff Report on MLM Income Disclosures: Many Observations Lead to Many Questions

Yesterday, the Federal Trade Commission issued a staff report documenting its review of 70 publicly available income disclosure statements from a wide range of multi-level marketing (MLM) and direct selling companies...more

Hinch Newman LLP

FTC Action Leads to Settlement Against Defendants Alleged to Have Operated a Business Opportunity Scheme

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On August 8, 2024, the Federal Trade Commission announced that as a result of a lawsuit, two defendants that allegedly helped operate a purported business opportunity scheme known by several names have agreed to settlements...more

Hinch Newman LLP

FTC Consumer Protection and Privacy December 2023 Spotlight

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On December 11, 2023, the Federal Trade Commission announced that it has obtained proposed orders against the operators of a purported wide-ranging scheme known as “The Sales Mentor” that allegedly made millions by falsely...more

Hinch Newman LLP

Direct Seller Defeats FTC Pyramid Scheme Allegations

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In November 2019, the Federal Trade Commission filed a lawsuit against direct selling wellness company Neora, LLC (f/k/a Nerium International, LLC) and its Chief Executive Officer alleging that the company operates as an...more

Jones & Keller, P.C.

Confidential binding arbitration clauses in MLM disputes

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Confidential arbitration clauses present an uphill battle to litigants seeking their day in court. When it comes to disputes in multilevel marketing matters, what is reasonable to fight and what is not?...more

Jones & Keller, P.C.

MLM Defense: FTC Earnings Claims and Nonsolicitation Clauses

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Nicole Westbrook, Jones & Keller in Denver, Colorado, and Spencer Reese, Reese & Richards in Utah, discuss FTC proposed rules on earnings claims and nonsolicitation clauses for network marketing companies and their...more

The Volkov Law Group

Episode 199 -- Jonathan Marks, Baker Tilly, and Michael Volkov Review the Under Armour SEC Case, Accounting Fraud and Revenue...

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Under Armour settled its long-pending SEC investigation by agreeing to pay $9 million surrounding misleading statements and practices relating to its revenue growth and uncertainties as to future growth. As part of the...more

WilmerHale

COVID-19: New York Implements New “Winter Plan” Micro-Cluster Strategy for Coronavirus Restrictions

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With coronavirus transmission rates again rising rapidly, New York Governor Andrew Cuomo announced on November 30 the state’s “Winter Plan” to combat COVID-19. This plan builds on the “Micro-Cluster Strategy” set forth in...more

Thomas Fox - Compliance Evangelist

Compliance into the Weeds: Herbalife FCPA Enforcement Action

Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode Matt and Tom go into the weeds to...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

City of St. Louis and St. Louis County Issue Stay Home Orders

On March 21, 2020, St. Louis County joined various other state and local municipalities, (including most recently, Illinois) in issuing orders for citizens to stay at home or “shelter in place” to contain and combat the...more

Harris Beach PLLC

Connecticut Employers Cannot Inquire About an Applicant’s Compensation History Beginning January 1, 2019

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On Tuesday, Governor Malloy signed into law a bill amending Connecticut’s Act Concerning Pay Equity so that, with limited exceptions, Connecticut employers will no longer be allowed to inquire about an applicant’s wage and...more

The Volkov Law Group

Episode 26 — Federal Reserve Blocks Wells Fargo Growth In Response to Governance and Risk Management Disaster

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In an unprecedented action, on February 2, 2018, the Federal Reserve restricted Wells Fargo's ability to grow its business until it implements comprehensive improvements to its board governance and risk and compliance...more

Kelley Drye & Warren LLP

Vemma Settles Ongoing Litigation with FTC over Pyramid Charges

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The FTC announced today that it had settled charges with multi-level marketer and seller of health and wellness drinks Vemma over allegations that it operated a pyramid scheme. The FTC initially filed the action in August...more

McGuireWoods LLP

SEC Describes Recent Efforts to Combat Pyramid Schemes and Affinity Frauds

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Over the past two years, the Securities and Exchange Commission (SEC) has stepped up enforcement actions against pyramid schemes and related affinity frauds. Last week, in a speech at the University of Illinois at Chicago,...more

Blake, Cassels & Graydon LLP

Court Clarifies Conditions to Certify a Class Action for Damages under Section 36 of the Competition Act

On August 7, 2015, Justice R. LeBlanc of the Federal Court of Canada dismissed a motion to certify a class action in Murphy v. Amway Canada Corporation, clarifying the conditions a proposed class plaintiff must meet in order...more

Orrick, Herrington & Sutcliffe LLP

Ninth Circuit Agrees with FTC that Online Marketing Program Was an Unlawful "Pyramid Scheme"

The legal status of many membership programs promoted via social media and spam has been called into question by a recent decision of the U.S. Court of Appeals for the Ninth Circuit, which affirmed a judgment that one such...more

Davis Wright Tremaine LLP

Nu Skin Fined in China for Improper Direct Sales Activities

The investigation was launched as a direct result of a series of news reports by the People’s Daily, China’s official newspaper released in January 2014, alleging that Nu Skin China had organized “brainwashing” gatherings,...more

K&L Gates LLP

Introducing the New Multi-Level Marketing Governing Act

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Taiwan had approximately 369 multi-level marketing (MLM) companies and a total of 3.09 million MLM participants as of December 31, 2012. Adjusting for people who participate in more than one MLM company, almost 12% of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Three Steps to an Engaging PowerPoint Presentation

Have you ever attended a presentation that reminded you of the phrase, “Death by PowerPoint”? ...more

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