MLM Startup Series
- Legal Principles of Multilevel Marketing
- Picking Your Partners
- Company Owners and Management Holding Genealogy Positions
Our common perception of property is something that we can physically possess. The law, however, has an entirely different concept. To the law, property is considered a bundle of rights, that include the right to use something, the right to possess that thing, the right to dispose of that thing, and the right to prevent other people from interfering with your rights respecting that thing.
More on the use of the use and misuse of the Third Party Labeling Excemption in dietary supplements marketing, including coverage of the impact of the FDA’s Xango Warning Letter.
A dangerous trend has taken root in the world of dietary supplement advertising. More and more companies are using third parties ostensibly unconnected with the company to author and publish materials extolling the benefits of the generic ingredients in their products. The problem is that these materials may not pass regulatory muster, and sooner or later will come under FTC scrutiny. Here’s what you need to know now to avoid problems in the future.
The proposed rule represents a serious challenge for direct sellers because it contains onerous obligations that will restrict their flexibility in recruiting new distributors and dramatically compromise the confidentiality distributors. This article describes the challenge and how industry can respond.
There is an overwhelming misperception among network marketing executives that they have nothing to worry about from the Federal Trade Commission or State Attorneys General so long as their compensation plans are not pyramids. In the case of network marketing programs, regulators focus first and foremost on the conduct of the company and its sales force to determine if they are engaging in unfair or deceptive consumer practices in their sales and marketing techniques. Since this is what regulators look at first, network marketing companies are well advised to follow the regulators’ lead.
One hundred and thirty six years of direct selling history in the United States absolutely establish that the most important factor is the value of the products, making value not only a business issue, but one of the most important factors affecting the legality of any network marketing program.
A customer program is the single best thing that a company can do to bullet-proof itself legally. Moreover, it is also one of the best things the company can do for its and its distributors bottom lines.
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 how to start an MLM company. In addition to MLM startup issues and multilevel marketing in general, it also covers, 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.
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.”