MLM Defense: FTC Earnings Claims and Nonsolicitation Clauses
Historically, the Federal Trade Commission (FTC) has touted self-regulation as integral to consumer protection. This has included encouraging industries to work with the Better Business Bureau (BBB) in developing a...more
Last week, a class action was filed in California state court alleging that Optavia, a multilevel marketing (MLM) company selling weight loss products and services, violated California's Automatic Renewal Law (ARL). The case,...more
In November 2019, the Federal Trade Commission filed a lawsuit against direct selling wellness company Neora, LLC (f/k/a Nerium International, LLC) and its Chief Executive Officer alleging that the company operates as an...more
“Blessing Loom” Scheme Unravels in FTC Settlement - Esoteric trappings can’t save pyramid-scheme-by-another-name - Neolawgism - By certain ironclad laws of demography, we aren’t allowed to add terms to the...more
Confidential arbitration clauses present an uphill battle to litigants seeking their day in court. When it comes to disputes in multilevel marketing matters, what is reasonable to fight and what is not?...more
The Federal Trade Commission reached a $150 million deal with multilevel marketing (MLM) defendants that also includes a ban from the business. ...more
The FTC announced today that it had settled charges with multi-level marketer and seller of health and wellness drinks Vemma over allegations that it operated a pyramid scheme. The FTC initially filed the action in August...more
Taiwan has approximately 369 multi-level marketing (MLM) companies and a total of 3.09 million MLM participants, as of December 31, 2012. Adjusting for people who participate in more than one MLM company, almost 12% of...more