Krehbiel v. Oklahoma

Does a referral sales plan violate state law when the client is not required to provide the names of additional purchasers as a condition of sale?


Krehbiel sold vacuum cleaners door-to-door. A clinet that purchased a vacuum cleaner had the option, but was not required, to submit the names of other potential customers to the sales person. If these referred people also bought a vacuum, the referrer made $25. The state sought an injunction, claiming that the promotional method violated state statutes.

Case and case summary are also available online at:

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

Reference Info: | United States

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