In a combination of moves, the U.S. Senate has not only broken the partisan deadlock at the FTC by approving the nomination of Alvaro M. Bodoya, but has also seen its commerce committee push forward a bill that would restore the FTC's consumer refund power.
The U.S. Senate has moved ever closer to approving nominees to both the FTC and FCC which would break the current partisan deadlocks in both agencies. This is major news as these nominations could shift the regulatory direction of both commissions moving forward. Learn more in this article from the Washington Post.
As we move toward the end of the first quarter of 2022, the FTC is not waning in its enforcement when it comes to misleading COVID-19 claims. In this recent article from Winston & Strawn, the commission's focus in this area is noted and the need for direct sales companies to implement systems for identifying misleading claims is emphasized.
The first 2022 edition of Momentum Factor's Social Selling Update Quarterly Newsletter is hitting inboxes today! Don't miss out on all of the professional news and insights for the direct selling executive.
The fact that legal challenges can have devastating consequences for direct selling firms does not come as news to veterans of the industry. Fortunately, our experts interpret recent legal challenges as reminders of the necessity of rigorous, up-to-date compliance and practices and policies, not as omens of a regulatory sea change. Class action litigation will force companies to continue to examine their business practices to ensure that they are in compliance with current FTC directives.
Momentum Factor CEO Jonathan Gilliam was recently featured in a MLM.com podcast to provide his thoughts about compliance challenges, reputation issues, and what direct selling companies can do to train their distributors, shape their culture, prevent illegal claims and avoid damage to their online reputations.