Social Selling News speaks with Direct Selling Association CEO Dave Grimaldi about the industry’s regulatory landscape, advocacy efforts and the path forward for direct selling companies.
Social Selling News: 2025 has been a busy year for the channel and for DSA. Let’s begin with your recent participation in the American Enterprise Institute’s panel discussion, “The FTC at the Crossroads: The Path Forward for Competition and Consumer Protection.” What did you hope to accomplish?
Dave Grimaldi: During the panel, I asked Chris Mufarrige, Director of the FTC Bureau of Consumer Protection, whether the Commission’s proposed earnings claim rule would be based on real data or driven by outdated assumptions. He acknowledged the importance of data, which was good to hear. But the implications of that exchange were clear: The FTC is ready to move forward with a rule that could reshape the entire channel based not on facts, but on misperceptions and the actions of a few bad actors. That’s why DSA is so engaged, because if we don’t correct the record now, those misconceptions could become law.
SSN: That idea, that misperception is becoming policy, seems central to DSA’s advocacy in 2025.
DG: Absolutely. The most effective advocacy is built on credibility. And that credibility comes from companies that understand the rules, operate ethically, and invest in education. When our members demonstrate a deep understanding of best practices and regulatory
expectations, it gives us the authority to speak for the channel, not just defend it.
SSN: Delaware’s House Bill 162 has undoubtedly been a test of that.
DG: HB 162 was a serious threat. The bill proposed a 48-hour waiting period, a three-month rescission right, and burdensome disclosures. Together with support from Grant Baskerville and the Utah Direct Selling Coalition, we met it head-on, with facts, testimony, unified field engagement, and trips to the state capital to plant the DSA flag and meet with the most pivotal lawmakers. Because of that, the bill has now been held for further consideration until January 2026. That outcome is the result of serious, credible advocacy—not just volume, but substance. It took a concerted effort that DSA was honored to spearhead.
SSN: And New Jersey?
DG: The New Jersey Department of Labor and Workforce Development has proposed regulations that would formalize the “ABC test” for determining independent contractor status. If misapplied to our model, it could strip away the flexibility that defines direct selling. We’re preparing formal comments and making sure the unique characteristics of this channel are properly understood in that process.
SSN: On the federal side, DSA has endorsed H.R. 3495. What’s the goal there?
DG: H.R. 3495, the Direct Seller and Real Estate Agent Harmonization Act, would align the Fair Labor Standards Act with the Internal Revenue Code. Direct sellers have been classified as independent contractors under tax law for decades. This bill ensures they’re clearly defined that way under labor law, too. It’s about clarity and protection, for both sellers and companies.
SSN: How does education factor into all this?
DG: Education is the foundation. You can’t advocate effectively if your house isn’t in order. DSA members take compliance seriously. They train their field on compliance. They work within strong guardrails. And that’s what powers our ability to say to regulators: “We’re not asking to be exempt, we’re asking to be understood.” Education shows that we’re not just self-regulated, we’re self-improving.
SSN: You’ve made that clear through your DirectTalks webinar series this year.
DG: Yes, and those webinars are ongoing. We’ve already hosted sessions on e-commerce transformation, cross-functional technology alignment, and brand turnaround strategies, helping companies think more strategically. It’s not enough to survive regulatory pressure; we have to be built to thrive in it.
SSN: What’s ahead for the fall?
DG: We’re heading into what I’ve been calling “back to school and back to advocacy.” On September 17, we’ll host Direct Selling Day on Capitol Hill, bringing field leaders and executives face-to-face with lawmakers. In November, our Direct Selling Compliance Professional (DSCP) Certification Program returns, and for the first time, it’s open to marketing professionals, not just legal teams. That’s a significant new development. In December, our Legal and Regulatory Conference will bring together top experts to help companies navigate this evolving environment.
SSN: Any final thoughts on where the channel stands right now?
DG: We’re at a turning point. Bad policy is gaining ground, but so is our ability to shape the narrative. The difference is that we’re showing up prepared. We’re advocating with facts. And we’re backed by a member community that leads with integrity. That’s the kind of coalition lawmakers respond to. And that’s how we protect this business model—not just today, but for the long haul.
Dave Grimaldi was interviewed by David Bland on behalf of Social Selling News.
