New Mexico v. Sinks

Is the New Mexico state multilevel sales act an unconstitutional restraint of speech or unconstitutionally vague?

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The Mexico Court of Appeals ruled that the statute was constitutional on both grounds. The promotion of the Rocky Mountain Traders Future Millionaires Society was commercial speech. Commercial speech is not afforded the same protection as other types of speech and may be restricted to protect the public from deceptive trade practices. The general prohibition against prior restraint does not apply to commercial speech. Pyramid programs are heavily regulated because of the history of abuse in the industry and the statute regulating them recognizes that under certain conditions, they can operate in a legitimate fashion. The language of the statute is worded in a way that a person of common intelligence can understand it's meaning. The statute is not unconstitutionally vague.

Case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/NewMexico_v_Sinks.php

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Published In: Civil Procedure Updates, 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.

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