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Bigsmart Not So Smart!
FDA Promulgates New Standard for Dietary Supplement Health Claims
At long last, the FDA has promulgated a new regulation clarifying the permissible scope of dietary supplement claims that have an effect on a structure or function of the body ("structure/function" claims). The regulation attempts to differentiate what constitutes permissible structure/function claims from impermissible disease claims. This is the guidance that all dietary supplement marketers have been craving since the Dietary Supplement Health and Education Act ("DSHEA") was passed in 1994.
Holidays Ring In Significant Anti-Pyramid Activity . . . FTC vs. 2XTREME Performance International . . . New Federal Sweepstakes Law. . . FDA Public Meeting on Supplement Health Claims . . . Another Pearson Case Filed Against FDA
What do you get when you combine a highly successful MLM that has staked its business on a weight loss product containing ephedrine, with an interview from ABC's 20/20? And just for good measure, throw the company CEO's tarnished past into the mix. By most accounts, this is a recipe for disaster for the company! This is the predicament that Metabolife International, Inc. recently faced. How did they handle it? By initial appearances, MAGNIFICENTLY!
Case Background & History . . . The Court's Preliminary Findings of Fact . . . Legal Standards . . . The Court's Legal Analysis . . . Pyramid Analysis . . . Deception Analysis . . . Preliminary Injunction Analysis . . . The Court's Order . . . What's Next?
This article discusses the Federal Trade Commission's definition of "door-to-door" sales (it's more expansive that you think!) the requirements, and how they apply to direct sellers.
An overview of the opportunities and problems inherent in Binary Compensation Plans, based on a common format utilized by companies selling prepaid long distance telephone cards.
This article examines the legal issues surrounding written earnings claims and income representations made by direct selling, multilevel marketing or network marketing companies and their distributors, and analyzes federal and state law relative to such representations.
A primer covering multilevel marketing, buying clubs, business opportunity statutes, referral sales, securities, lotteries, and recent litigation.
Discusses the timely topic of what legal problems are associated with override bonuses on training programs.
Get Your Hands Off My Downline!!!
If God had been running an MLM rather than delivering the Jews from Egypt, the first
of the Ten Commandments given to Moses would have been "thou shalt not steal thy
neighbors downline." Following closely on the heels of this commandment would be "thou shalt not covet thy neighbor's downline," and "thou shalt not commingle downlines."
Are You "EnviroLegally Correct"? SalesWatch, January, 1996
This issue of SalesWatch(SM) discusses the Federal Trade Commissions Guides for the Use Environmental Marketing Claims and the FTC's enforcement activities against manufacturers and marketers who "went to far."
Additionally, the FTC has begun to take action against the individual decision-makers in involved in marketing these products. Some of the fines involved exceed $1,000,000.
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