Commonwealth v. Tolleson, 14 Pa. Commonwealth Ct. 157 (1974)

Commonwealth v. Tolleson, 14 Pa. Commonwealth Ct. 157


The Pennsylvania Attorney General brought an action against James & Rodney Tolleson alleging their business was an illegal "referral sales" scheme. The Tollesons consented to stop selling memberships in their scheme while the action was pending. However, sales events continued and memberships were sold in nearly the same way as before, except that those doing the selling were now called "franchisees" rather than "executive members." The PA Attorney General brought a claim for civil penalties for violation of the consent decree. The Tollesons claimed that they had no control over the sales activities of the franchisees because they were independent businessmen. Further, they claimed that because the business was now selling franchises instead of memberships it was now in compliance with the law.

Also available at:

LOADING PDF: If there are any problems, click here to download the file.

Published In: Consumer Protection Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 3rd Circuit, Pennsylvania | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »

Follow Babener & Associates:

Reporters on Deadline