Following the Supreme Court’s unanimous ruling that the FTC had been incorrectly wielding its power concerning Section 13(b) of the FTC Act, it appeared that the FTC’s power to inflict monetary damages without first subjecting themselves to the administrative processes found in Section 5 of the FTC Act would be limited.
This new change will allow informal hearing procedures and eliminate the current rules that are not articulated in the FTC Act—like the publication of a staff report that contains a rulemaking and recommendations record for public comment—but maintain that these updated procedures will offer extensive opportunities for public comment.
The advertising watchdog group TruthInAdvertising.org (TINA) sent a letter yesterday to the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), requesting that the FTC “implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.” The letter […]
The Direct Selling Association (DSA) released an official statement following an announcement by the Federal Trade Commission (FTC) and the state of Arkansas that accuses Blessing Loom of being a pyramid scheme. In its statement, the DSA said the situation “highlights the value of and need for strong anti-pyramid laws and enforcement.”
The Federal Trade Commission (FTC) announced in a Statement of Commissioner Rohit Chopra that it will begin looking for other methods to seek restitution or disgorgement from companies in the wake of the U.S. Supreme Court ruling that the Commission could not do so using Section 13(b) of the FTC Act.
Companies utilizing the negative option feature should take note: the FTC has found a new avenue for obtaining monetary relief.
As President of DSA, it is my job to evaluate and report on cases like the recent Federal Trade Commission announcement regarding AdvoCare dispassionately and to analyze the impact on the direct selling channel and assist our members in charting a course forward. Nonetheless, it is difficult for me to believe the investigators got all […]
Our channel needs to update its recruiting message and practices and concentrate on the real motivations and needs to attract future prospects. Amazon, gig economy competitors and other market forces have taken some wind out of direct selling’s sales. After years of significant growth, our industry’s U.S. revenue was down 1.6 percent in 2016 and […]
Today’s direct selling climate demands companies establish a compensation strategy, rather than just a commission plan. In the world of same-day shipping, the gig economy and instantaneous communication, you want to know where you stand in the direct selling industry and how to stay competitive. The landscape is shifting, and it will soon become apparent […]
AdvoCare International today announced a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan. AdvoCare has been in confidential talks with the Federal Trade Commission about the AdvoCare business model and how AdvoCare compensates its Distributors. The planned change will impact Distributors who have participated in the multi-level […]
Most of us know the game “Telephone” where one person whispers a statement to their neighbor, and that person turns to their neighbor and repeats the statement as they heard it. The further down the line, the more the statement is misinterpreted and altered. In today’s fast-paced digital environment, unchecked or even false information can […]
In our January 2019 issue of Direct Selling News, we published a story on some best practices to employ when responding to misleading facts about your company or negative criticism of the industry. The article illustrates that sometimes it’s better to leave things alone because it can just bring more attention to the story. But, there are times when […]