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?

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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: http://www.mlmlegal.com/legal-cases/Krehbiel_v_Oklahoma.php

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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.

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