As a general matter, MLM companies will be very specific about what distributors can and cannot say about the company’s products. Usually, this information will appear in the company’s literature. MLM companies can find themselves in serious mess with state officials, the FTC, the FDA, and other government agencies if unauthorized product claims are being made by consultants.
As a general matter, MLM companies will be very specific about what distributors can and cannot say about the company’s products.
In 1994, The Dietary Supplement Act enabled MLM companies and their distributors to amplify their statements on the benefits of dietary supplements. Under the 1994 Dietary Supplement Act, third-party literature and/or scientific studies, which are generic in nature, are allowed to be passed out to the public.
MLM companies that have specific data to backup their statements may make claims about ingredients in their products when the claims relate specifically to their impact on the structure and function of the human body, as opposed to medical therapeutic claims. For instance, under The Dietary Supplement Act, a direct sales company may comment that vitamin C is beneficial to connective tissue. Keep in mind, however, that this is not the same thing as claiming that a particular nutrient in a product will treat or cure a connective tissue disease.
This article is also available online at: http://mlmlegal.com/MLMBlog/?p=412
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