Tag: JG Factor

After proposing a rule back in January of 2023 to potentially ban noncompetes, the FTC voted to ban noncompete agreements nationwide on Tuesday, April 23.

With the expansion of culture through social media in just the last 10 years, social selling is no longer a young person’s game. It is now almost a requirement for every direct selling company to harness the power of social media selling and pave the way to creating meaningful digital connections in order to be successful. 

The FTC sent letters to both the DSA and the DSSRC on Friday, March 15. While these letters or advisory opinions reflect the views of the current FTC staff and are not official Commission positions, the letter to the DSSRC raised concern about the program's guidance about income disclosure statements, and the letter to the DSA restated the FTC's position on the interpretation of the Koscot Test. Learn more in this article from Kelley Drye.

The FTC has published inflation-adjusted civil penalty amounts for 2024 where the maximum civil penalty amount is now $51,744 per violation.

It can be demoralizing to have compliance constantly reaching out to correct claims that a seller assumed were just fine. Yes, monitoring is essential as you do not want your field to be easy target for regulators to put your company at risk.  So how do you monitor, keep the field happy and prevent future infractions at the same time? The answer is education through compliance training.

The FTC has issued warning letters to a pair of trade associations and at least a dozen influencers regarding improper social media posts. Notably, each letter also included the FTC’s notice of penalty offenses concerning misleading endorsements and indicated that the recipient could face civil penalties of up to $50,120 per violation.

In an important regulatory decision for the direct selling industry, Neora has won its case against the FTC. Read the full press release here.

Unauthorized sellers battle with companies for consumer dollars, and customers look for the quickest, cheapest way to get the product on their doorstep. This severely impacts a direct seller's bottom line and, most importantly, hurts the field, as they often cannot compete with the cut-rate prices found online.

One day after releasing updated Advertising Guides to combat deceptive reviews and endorsements, the FTC has announced a proposed rule to ban fake reviews and testimonials. This marks yet another action taken by the Commission to prevent deceptive advertising practices and protect consumers.

Following a public comment period (beginning in May of 2022) for proposed changes to its current Endorsement Guides, the FTC has announced updated Advertising Guides to combat deceptive reviews and endorsements in order to protect consumers.