FTC cracks down on income claims in “Operation Income Illusion”

The Federal Trade Commission (FTC) together with federal, state, and local law enforcement partners announced Operation Income Illusion, a nationwide crackdown on illegal income claims. According to the FTC, Operation Income Illusion focused on scammers making false promises of income … Continue Reading

Momentum Factor Wins 4th Inc. 5000 Award as One of America’s Fastest-Growing Private Companies—Inc. 5000

AUSTIN, Texas, August 14, 2020 – Inc. Magazine has recognized Momentum Factor, a leading global provider of online risk mitigation applications and services, amongst the fastest growing companies in the U.S. on its annual Inc. 5000 rankings for the fourth … Continue Reading

Direct Selling Self-Regulatory Council Issues New Guidance on Earnings Claims for Direct Sellers

Arlington, VA – July 9, 2020 – BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC), in partnership with the Direct Selling Association (DSA), today released new Guidance on Earnings Claims that defines and identifies earnings claims to ensure all representations … Continue Reading

Supreme Court Upholds Federal Government to Disgorge Illegal Profits

The 8-1 decision is a victory for the federal government and its power to “disgorge” money from those who obtained it illegally. “The court holds today that a disgorgement award that does not exceed a wrongdoer’s net profits and is … Continue Reading

Neora Sues FTC in Challenge to Its Authority

Dallas-based Neora has filed against the FTC in the Seventh Circuit today.  Neora is essentially asking for a broad declaratory judgment that would cabin the FTC’s authority to pursue MLM companies. Click here for the full complaint.  

LIVE WEBCAST: FTC vs. Advocare – Has the Game Just Changed? 10/9/19 2pm CT

Has the game just changed? In a case that is sure to reverberate across the direct selling industry, AdvoCare and its former CEO are required to pay $150 million in fines for allegedly operating a pyramid scheme. While the themes … Continue Reading

Webcast: “Self-Regulation is Here. Is Your Company Prepared?” April 4, 12pm CT

A conversation about the new Direct Selling Self-Regulatory Council with Jonathan Gilliam and Peter Marinello.– For the first time in direct sales history, a truly independent self-regulatory body has been created to enforce social media and marketing rules among all … Continue Reading

The Crackdown on CBD Edibles Has Begun | Esquire.com

CBD, one of the buzziest wellness products of 2019, just hit a snag. New York City has forbidden the sale of CBD edibles in restaurants, bars, and other establishments that fall under the Department of Health’s purview, Eater reported Tuesday. … Continue Reading

ALERT: FTC Releases Guidance for Direct Sellers and MLMs

The FTC staff have released guidance for direct sales companies on its official website.  From FTC.gov: Multi-level marketing is a diverse and varied industry, employing many different structures and methods of selling. Although there may be significant differences in how … Continue Reading

New Wave of Class-Action Pyramid Cases Swamps Industry

“The plaintiff’s bar is smelling blood.”  In March of this year, a federal judge in Nevada accepted a $7.7 million dollar settlement offer from Xocai as the result of a class action lawsuit. Last November, the U.S. Fifth Circuit certified … Continue Reading