The Court held that the administrative rules prohibiting chain distributor schemes were lawfully issued and properly abided by statutory limits. The Dept. of Agriculture was given the authority to pass rules that regulated unfair trade practices. The Department found that chain distributor schemes were unfair in that later participants were at a disadvantage because the pool of potential new participants would have shrank over time, limiting their possibilities of success. The procedures that the Department followed were proper, and there was adequate findings supporting the prohibition of chain distributor schemes.
Case and case summary are also available at: http://www.mlmlegal.com/legal-cases/HMDistributorsMilwaukee_v_WisconsinDeptAgriculture.php
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