Companies utilizing the negative option feature should take note: the FTC has found a new avenue for obtaining monetary relief.

The Supreme Court ruled that the FTC cannot use Section 13(b) to seek monetary relief without due process. Now a new bill is seeking to unravel that decision.

In a unanimous court decision, the Supreme Court announced that Section 13(b) of the FTC Act does not authorize the FTC “to seek, or a court to award, equitable monetary relief such as restitution or disgorgement.” The ruling does affirm that the FTC can seek monetary relief, but it must first invoke “its administrative procedures […]

The Direct Selling Self-Regulatory Council (DSSRC) is now referring Bulavita, a direct selling company specializing in muscadine-based supplements, to the Federal Trade Commission. The DSSRC reached out to the company about claims that have been made concerning product efficacy and distributor earning claims, but the company failed to reply. Included in the DSSRC’s inquiry are […]

The year 2019 will go down as one of the biggest sea change years in the history of our channel. Our cover story this month will cover the events that impacted our channel the most: pressure from regulatory bodies, continued competition from alternative income opportunities, a hot new ingredient makes its debut, and finally, customer […]

In 2019 Direct Selling Faced Some Strong Headwinds Throughout this year the editors at Direct Selling News have had no shortage of topics to talk about. Never before have we seen such a year that has so dramatically impacted the future of direct selling. We began 2019 with troubling news out of China and ended […]

The recent FTC actions against Advocare and Neora underscore how critically important it is for direct selling to avoid becoming ensnared in an FTC investigation Neora’s recent lawsuit challenging the FTC’s enforcement authority is a welcome and needed response to what appears to be increasing regulatory overreach and efforts by the FTC to improperly legislate […]

The Direct Selling Association’s (DSA) Legal & Government Relations Team yesterday issued a memorandum related to last Friday’s Federal Trade Commission (FTC) action against member company Neora. The memorandum, sent to the DSA Board and executive committees, notes three areas in which FTC criteria or guidance used in the complaint have not been used in previous cases. […]

Just hours after Neora posted their press release about suing the FTC for improperly changing direct selling laws, The FTC posted its own press release stating alleging that Neora, formerly Nerium International, and its Chief Executive Officer, Jeffrey Olson, operates an illegal pyramid scheme that pushes distributors or brand partners to focus on recruiting new distributors, […]

In a statement released today, Neora, a leading skincare and wellness products direct selling company, states that the Federal Trade Commission (“FTC”) has recently targeted the direct selling industry, trying to change the way direct sales companies can operate without going through the proper legislative process or formal rulemaking. Not only has Neora rejected an […]

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 […]

DSA Brings Together Government Officials, Industry Leaders to Discuss Vital Issues for Direct Selling On October 7–8, the Direct Selling Association (DSA) hosted its annual Legal and Regulatory Seminar in Washington, D.C. The seminar brought together industry leaders to discuss legal and regulatory issues impacting the direct selling business and how companies and the Association […]