FTC v. Bigsmart.com, LLC (2001)

FTC v. Bigsmart.com, LLC

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Bigsmart.com was an internet network marketing company. Members were given "welcome pages" through which consumers could purchase items from third party merchants like MarthaStewart.com and BarnesAndNoble.com, as well as the Bigsmart "Superstore." Members could earn money both through sales and attracting new members, however members were required to sell 600 "Bigsmart bucks" worth of merchandise through the Bigsmart Superstore before they were eligible to earn commissions for recruiting new members. The FTC alleged that the only products worth 200 "Bigsmart bucks" had value only to accumulate points so as to qualify for the commissions.

The full case and summary are also available at: http://www.mlmlegal.com/legal-cases/FTC_v_BigsmartLLC.php

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

Reference Info:Federal, 9th Circuit, Arizona | 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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