Consumer Protection › MLM / Direct Sales

FTC Guidelines on Endorsements and Testimonials - Analysis

This article addresses issues relating to the Federal Trade Commission's recent issuance of new FTC administrative Guidelines pertaining to endorsements and testimonials, relied upon by consumers, in the course of marketing...more

FTC v. BurnLounge: Lessons Learned for MLM/Direct Selling

1. FTC stated policy has been to prosecute egregious pyramid schemes as opposed to mainstream direct selling. By and large, this has been the case since the famous 1979 FTC Amway unsuccessful prosecution. 2. FTC and major...more

MLM Earnings - How Much?

Probably the first question that is asked by an individual who is being recruited for a network marketing business opportunity is: How much can I make? The answer that you get will tell you a lot about the quality of the...more

MLM In Cyberspace

Unless you have been living in a cave, you can't have missed experts' predictions that the Internet will be one of the most powerful forces in the 21st Century. Some commentators say that virtually every device and wall...more

FTC and Advertising

The most important, but not the only regulator of advertising is the Federal Trade Commission. The FTC has the power to order a business to cease and desist using an advertisement found to be deceptive, and violation of an...more

META TAGS - MLM Subliminal Marketing

Of course, this is a fictitious occurrence, but this sort of trickery is enabled by the internet every day. This is accomplished by insertion of "meta-tags" at web sites, invisible descriptive terms that are picked up by...more

Direct Sales -An Overview- The Legal Environment

* The legal history of direct selling and the Direct Sales Industry has been characterized by cycles in which the legal climate has vacillated between challenge and support. In 1998 the legal climate is generally...more

MLM LAWS IN 50 STATES

Every state has adopted laws regulating MLM companies. Although much enforcement activity has come from the federal government through the FTC, SEC and U.S. Postal Service, the vast majority of enforcement activity has...more

And the Leaves that are Green Turn to Brown – MLM Penny Auctions

The recent SEC prosecution and demise of MLM penny auction business, Zeek Rewards, followed by dramatic changes in other copycat MLM penny auction programs, is the latest in a cycle that too often hits the MLM/Network...more

FTC Guidelines on Endorsements and Testimonials- Regulation of Advertising

I. FTC REGULATION OF ADVERTISING. Under Section 5 of the Federal Trade Commission Act, the Commission has broad authority to prohibit "unfair or deceptive acts or practices" in interstate commerce. 15 U.S.C. § 45. This is...more

It's Our Name - Live With It

A networking distributor cannot help but being blurry-eyed as he or she reads through the dense language of the policies and procedures and contractual agreements of a network marketing company. Such agreements are a close...more

How a claim can be correct but breach the law

The Consumer Law Reform Bill will introduce a prohibition on making unsubstantiated claims into the Fair Trading Act. In practice, this means that all claims about your products (that a reasonable person would expect to be...more

SEC v. REX VENTURE GROUP, LLC d/b/a ZEEKREWARDS.COM, and PAUL R. BURKS

Full Text of Securities and Exchange Commission's Complaint - Zeek Rewards

The Commission files this emergency action to halt the fraudulent unregistered offer and sale of securities in an unregistered investment contracts constituting securities in a combined Ponzi and Pyramid scheme perpetrated by...more

FTC v. BurnLounge

FTC v. BurnLounge: Final Press Release

FTC Action Leads to Court Order Shutting Down Pyramid Scam Thousands of Consumers Burned by BurnLounge At the request of the Federal Trade Commission, a U.S. district court judge has ordered the operators and top promoters...more

FTC v. BurnLounge: Amended Final Judgement and Order

FTC v. BurnLounge: Amended Final Judgement and Order

On June 6, 2007, the Plaintiff, Federal Trade Commission (“FTC” or “Commission”) filed a Complaint for Injunctive and Other Equitable Relief against BurnLounge, Inc., Juan Alexander Arnold, John Taylor, Rob DeBoer and Scott...more

AMENDED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION AND OTHER EQUITABLE REFLIEF AGAINST DEFENDANTS BURNLOUNGE, INC., JUAN ALEXANDER ARNOLD, JOHN TAYLOR AND ROB DEBOER

FTC v. BurnLounge: Final Judgment and Order

On June 6, 2007, the Plaintiff, Federal Trade Commission (“FTC” or “Commission”) filed a Complaint for Injunctive and Other Equitable Relief against BurnLounge, Inc., Juan Alexander Arnold, John Taylor, Rob DeBoer and Scott...more

Burns v. Ferro , 1991 WL 53834 (1991) (Not Reported)

Burns v. Ferro - 2

The Superior Court held that material questions of fact surrounded the questions presented, and summary judgment was therefore not appropriate. Chrysler First Financial made loans to consumers that were used to purchase...more

Burns v. Ferro , 1991 WL 53833 (1991) (Not Reported)

Burns v. Ferro - 1

The Superior Court held that its previous decision was correct concerning material questions of fact that surrounded the questions presented, and summary judgment was therefore not appropriate. Chrysler First Financial made...more

Canadian Marketing, Advertisng & Regulatory Law Update

A year in review from Heenan Blaikie's national Marketing, Advertising & Regulatory Law practice....more

Are you ready for Canada's new anti-spam legislation?

The Canadian federal government recently passed a new anti-spam law that is expected to take effect soon. The law is very broad and the penalties for non-compliance are very steep. Virtually every person and business in...more

FTC v. BurnLounge: Statement of Decision

FTC v. BurnLounge: Statement of Decision

Plaintiff Federal Trade Commission ("FTC") brought this action claiming that Defendants BumLounge, Inc. ("BurnLounge"), its Chief Executive Officer and Chairman - Juan Alexander Arnold ("Arnold"), and independent retailers...more

Walker v. Amerireach.com

Is a claim under a state's business practices act barred by a default of a previous contract claim?

The Georgia Court of Appeals held that a claim under the Business Practices Act was a claim independent of a contract claim, and was not subject to the contract's forum selection clause or barred res judicata. Walker had...more

FTC Updates "Green Guides" to Environmentally Friendly Marketing

Everyone is green these days, or so it seems. Claims that products are environmentally friendly, organic or all-natural are ubiquitous in promotional materials. Indeed, nearly every industry touts the environmental aspects of...more

Wilder Chiropractic v. Pizza Hut of Southern Wisconsin, Inc.

Motion to Dismiss for Lack of Subject Matter Jurisdiction as a result of Offer of Judgment

Brief detailing the origin of many class actions brought under the Telephone Consumer Protection Act, and in support of motion to dismiss case for lack of subject matter jurisdiction based on tender of Offer of Judgment to...more

FTC Provides Further Guidance to Advertisers Using Social Media

The undeniable benefits of word of mouth and viral marketing via blogs, Twitter, Facebook and other social media platforms have radically changed the marketing landscape. In an effort to stay current with the way in which...more