Expert MLM Attorney, Jeff Babener, discusses how companies should handle discussions about compliance with their distributors. It is important for direct selling companies to be clear about what claims/statements distributors, consultants, members, representatives, etc. can and cannot claim about their earnings and products.
Interviewer: What I want to do now, Jeff, I want to turn our attention to compliance. Because this is an important key issue for any company, for any business owner, for any consultant or distributor, to know that their business is compliant. What would you say are, in your mind, the top issues regarding compliance that someone needs to be adhering to in order to make sure that they themselves are being compliant in the marketplace?
Jeff Babener: Okay. Well, maybe we ought to talk about this issue from the perspective of the company and from the perspective of the distributor. But in fact they’re one and the same. We have two goals: one is to help make them successful, and secondly, to help keep them in business. We’ve represented a lot of the leading direct selling companies. We’ve helped to start a lot of MLM companies.
You can’t have one without the other and ultimately be a successful company. So, when we talk about compliance, we often have to remember that a company has basically asked a lot of people to join as its partners. The company is managing a volunteer army.
This article can also be viewed on our blog at: http://mlmattorney.com/blog/2013/01/24/interview-with-expert-mlm-attorney-how-to-handle-compliance-discussions-with-your-distributors/
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