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
“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
The Federal Trade Commission reached a $150 million deal with multilevel marketing (MLM) defendants that also includes a ban from the business. ...more
Following the disclosure of the massive Madoff fraud, Ponzi scheme cases became a staple of SEC enforcement. More recently the agency seems to be focusing on another type of investment fraud scheme — pyramid schemes. At the...more
Taiwan had 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