Monday / January 29. 2024
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Monday / January 29. 2024
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FTC Approves Changes to Reinvigorate its Rulemaking Authority
FTC Approves Changes to Reinvigorate its Rulemaking Authority
This new change will allow informal hearing procedures and eliminate the current rules that are not articulated in the FTC Act—like the publication of a staff report that contains a rulemaking and recommendations record for public comment—but maintain that these updated procedures will offer extensive opportunities for public comment.
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Truth In Advertising Organization Lobbies FTC to Target Direct Selling Industry with Penalty-Offense Program
Truth In Advertising Organization Lobbies FTC to Target Direct Selling Industry with Penalty-Offense Program
The advertising watchdog group TruthInAdvertising.org (TINA) sent a letter yesterday to the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), requesting that the FTC “implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.” The letter […]
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DSA Emphasizes Importance of Strong Anti-Pyramid Laws & Enforcement Following FTC Action Against Blessing Loom
DSA Emphasizes Importance of Strong Anti-Pyramid Laws & Enforcement Following FTC Action Against Blessing Loom
The Direct Selling Association (DSA) released an official statement following an announcement by the Federal Trade Commission (FTC) and the state of Arkansas that accuses Blessing Loom of being a pyramid scheme. In its statement, the DSA said the situation “highlights the value of and need for strong anti-pyramid laws and enforcement.”
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FTC to Review Business Opportunity Rule as New Way to Invoke Civil Penalties Against MLM Companies
FTC to Review Business Opportunity Rule as New Way to Invoke Civil Penalties Against MLM Companies
The Federal Trade Commission (FTC) announced in a Statement of Commissioner Rohit Chopra that it will begin looking for other methods to seek restitution or disgorgement from companies in the wake of the U.S. Supreme Court ruling that the Commission could not do so using Section 13(b) of the FTC Act.
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The FTC’s Aggressive Expansion of the ROSCA Act
The FTC’s Aggressive Expansion of the ROSCA Act
Companies utilizing the negative option feature should take note: the FTC has found a new avenue for obtaining monetary relief.
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A Discussion of the FTC Announcement
A Discussion of the FTC Announcement
As President of DSA, it is my job to evaluate and report on cases like the recent Federal Trade Commission announcement regarding AdvoCare dispassionately and to analyze the impact on the direct selling channel and assist our members in charting a course forward. Nonetheless, it is difficult for me to believe the investigators got all […]
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Raising The Bar
Raising The Bar
Our channel needs to update its recruiting message and practices and concentrate on the real motivations and needs to attract future prospects. Amazon, gig economy competitors and other market forces have taken some wind out of direct selling’s sales. After years of significant growth, our industry’s U.S. revenue was down 1.6 percent in 2016 and […]
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Developing a Modern Compensation Strategy
Developing a Modern Compensation Strategy
Today’s direct selling climate demands companies establish a compensation strategy, rather than just a commission plan. In the world of same-day shipping, the gig economy and instantaneous communication, you want to know where you stand in the direct selling industry and how to stay competitive. The landscape is shifting, and it will soon become apparent […]
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AdvoCare Announces Revision of Business Model
AdvoCare Announces Revision of Business Model
AdvoCare International today announced a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan. AdvoCare has been in confidential talks with the Federal Trade Commission about the AdvoCare business model and how AdvoCare compensates its Distributors. The planned change will impact Distributors who have participated in the multi-level […]
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Fact or Fiction? Let’s Set the Record Straight
Fact or Fiction? Let’s Set the Record Straight
Most of us know the game “Telephone” where one person whispers a statement to their neighbor, and that person turns to their neighbor and repeats the statement as they heard it. The further down the line, the more the statement is misinterpreted and altered. In today’s fast-paced digital environment, unchecked or even false information can […]
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Keeping the Media Accountable
Keeping the Media Accountable
In our January 2019 issue of Direct Selling News, we published a story on some best practices to employ when responding to misleading facts about your company or negative criticism of the industry. The article illustrates that sometimes it’s better to leave things alone because it can just bring more attention to the story. But, there are times when […]
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Are You Sure Your Data Is Safe?
Are You Sure Your Data Is Safe?
Vigilance, continuous learning are industry’s best defenses against cybercriminals. It has become a painfully common headline: “Cyberthieves breach company’s system, steal credit card numbers, Social Security numbers, birthdates, passport numbers . . .” High-profile corporations such as Target, Equifax and Marriott all have been robbed of massive amounts of valuable consumer data in recent years, proving […]
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