Kansas v. Koscot Interplantetary Inc.

Do the business activities of Koscot violate Kansas State's unlawful business practices act?

more+
less-

The Kansas Supreme Court ruled that the activities of Koscot violated the state unlawful business practices act, and the revocation of the company's business license and injunctions preventing similar operations were appropriate. Koscot sold cosmetics though a network of distributors who were compensated for recruiting additional members. The Court found that the sale of cosmetics was incidental to the operation of the company; its main goal was to increase the number of distributors. However, because continued revenue required continued recruitment, and recruitment could not expand at the exponential rate required forever, the promises of future wealth to new recruits were illusory, and violated of the state unlawful trade practices act.

Full case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Kansas_v_KoscotInterplantetaryInc.php

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

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

Reference Info: | 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 »

CONNECT

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


Follow Babener & Associates:

Reporters on Deadline