Distributor FAQ: In regards to event sales, such as fairs, kiosks, vending machines, etc., am I authorized to sell my company’s products at such events?

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Most companies would prohibit sales in flea markets, swap meets, vending machines or garage sales. It is generally viewed that such locations dilute the value of the company’s products and opportunity. Companies typically prohibit sales in retail stores, but the purpose for this rule is to avoid the appearance of the company being in competition with the direct selling channel of its distributors, a model that is really based on person-to-person marketing. On the other hand, it is quite usual for companies to authorize sales at community fairs. In this case, a distributor is expected to obtain written approval and to operate a booth within company guidelines for use of advertising and its trademark. In addition, companies typically prohibit commingling company products with non-company products or the offering of other business opportunities.

Visit www.mlmlegal.com and www.mlmattorney.com for more information on the network marketing industry.

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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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