Tag: JG Factor

According to a recent article by Scheef & Stone's Brent Kugler in The World of Direct Selling, regulators are taking aim at company compliance practices and direct selling companies should take heed.

The Ninth Circuit Court of Appeals has upheld a decision in favor of the FTC to issue a permanent injunction and over $7 million in civil sanctions against people engaged in an illegal MLM scheme. Read this JD Supra article to learn more.

The DSA announced that the House Committee on Education and the Workforce moved the Direct Seller and Real Estate Agent Harmonization Act out of committee in an effort to clarify independent contractor status for direct sellers. Read this article from Business Wire to learn more.

The FTC has dropped its appeals against legal challenges to its noncompete ban and will now continue enforcement against unlawful non-competes on a case-by-case basis. Learn more about this development in an article from HR Dive.

On Wednesday, July 9, the U.S. Court of Appeals for the Eighth Circuit struck down the FTC's Negative Option (or Click-to-Cancel) Rule prior to its effective date of July 14. Check out this article from Kelley Drye to learn more.

The FTC is proposing Business Opportunity Rule changes as well as a new rule to deter deceptive earnings claims by multi-level marketers and money-making opportunity sellers. Read the full press release here.

Amending the Negative Option Rule, the FTC announced its final "Click-to-Cancel" Rule in order to ease consumers ability to end recurring subscriptions and memberships. Read the FTC's press release here to learn more.

On Wednesday, September 4, the staff of the FTC issued a report outlining the findings from a review of public income disclosure statements from 70 different multi-level marketers. Check out their full findings in this FTC press release.

A recent Texas District Court decision has prevented the FTC's Non-Compete Ban from taking effect nationwide on the scheduled date of September 4. Check out this JD Supra article to learn more.

The FTC recently finalized a rule to ban fake reviews and testimonials, including those generated by AI. According to the new rule, the maximum civil penalty for those using fake reviews is $51,744 per violation.