Category: Regulatory

Once again, the Federal Trade Commission (FTC) has sent out a round of letters to a new list of MLM companies warning them to stop their field from posting that their products can cure the Novel Coronavirus/ SARS-CoV2.They are giving the companies 48 hours to prove they have put actions into place to address their concerns. These posts include mentions of eliminating vaccines, boosting immunity, using a stimulus check to make more money, and much more.

The Federal Trade Commission (FTC) today announced it has sent 10 letters warning multi-level marketing companies (MLMs) to remove and address claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both.

A federal court granted the Federal Trade Commission’s (FTC) request to temporarily shut down an alleged pyramid scheme known as “Success By Health,” and to freeze the assets of the company and its executives.

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. Join Momentum Factor's CEO Jonathan Gilliam and prominent direct selling attorney Spencer Reese on October 9 for a webcast as they provide you concrete steps to protect your company from what could be a new FTC approach to the industry.

The bottom line for direct sellers is that if the Federal Trade Commission (FTC) loses its 13(b) authority, it loses its punch. Legitimate direct selling companies do not fear squaring off against the FTC so long as they are not blind-sided.

Momentum Factor CEO Jonathan Gilliam recently interviewed Peter Marinello, Executive Director of the Direct Selling Self-Regulatory Council (DSSRC) to learn how the program will impact the compliance function of direct sellers.

Esquire delves into moves made against retailers that sell CBD-infused products in New York City, Ohio, and Maine.

Last August, Social Selling News reported on the U.S. Direct Selling Association’s (DSA) announcement of the formation of a new self-regulatory body that would monitor and act upon all companies identified as direct sellers and multi-level marketers, whether or not they are members of the industry association. The entity is now live and has a name: the Direct Selling Self-Regulatory Council (DSSRC).

The US FDA on Tuesday announced sending 14 warning letters and four online advisory letters to companies selling dozens of products that claim to cure, diagnose, treat or prevent cancer.

Federal Trade Commission Chairwoman Edith Ramirez said in an interview with The Washington Post that she will soon step down as head of the country's most powerful consumer watchdog, after serving more than three years in the role and another three years before that as a commissioner.