Consumer Protection: The California Seller Assisted Marketing Plan Act


California's Seller Assisted Marketing Plan Act is a powerful piece of consumer protection law that affects people who are trying to start or continue home-based businesses. It is found in California Civil Code in section 1812.200 and it contains a lot of requirements for businesses that are selling these schemes to consumers. If businesses fail to meet those requirements we can sue them for damages and hold them accountable for misrepresentation, fraud, duplicitous conduct, and more.

The act requires that representation be truthful and prohibits a whole series of representations and activities that have a tendency to mislead. There is an information sheet that has to be provided in accordance with the California law to provide, again, thorough and complete information. There are requirements of what the contract terms are when a contract is entered into for a seller assisted marketing plan and there are mandatory contract provisions. And that is just some of what the act provides.

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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.

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