SSN Admin
PEOPLE ON THE MOVE – February
February 01, 2023
Stephan Gratziani, Herbalife
Herbalife has promoted Stephan Gratziani to president as part of its succession plan. Gratziani, who has spent over 32 years as an Herbalife distributor, joined the corporate office in August 2023 as chief strategy officer. In his new role, Gratziani will partner with regional presidents and teams to implement strategic initiatives.
Özlem Çitçi, Avon
Avon has promoted Özlem Çitçi to chief marketing officer. Previously, Çitçi was head of the company’s marketing department in Europe. She joined Avon in 2020 as the executive director of marketing for Turkey. In her new role, Çitçi will lead global brand marketing as well as Avon’s commercial marketing in Europe.
Hello Friends,
As I studied the recent court cases and government agency announcements potentially impacting our channel to include in this issue of SSN, I was reminded of the immense challenge that companies (especially direct selling companies) and their legal teams face when navigating the ever-evolving landscape of regulatory oversight.
As we saw in the landmark 2021 Supreme Court decision ending the FTC’s authority to seek equitable monetary relief through Section 13(b) of the FTC Act, even long-held judicial and administrative frameworks are subject to change.
Decision could impact FTC’s relationship with direct selling channel
By: David Bland
“An end to Chevron deference will make it more difficult for the FTC to publish regulations and rules that exceed the agency’s statutory authority or initiate enforcement actions based on unpublished, subjective criteria.” – Brent Kugler, Partner, Scheef & Stone, LLP
In January 2024, the U.S. Supreme Court took up two cases that have the potential to upend 40 years of administrative law precedent and fundamentally alter the regulatory landscape, ushering in a new era of legal interpretation that could reshape the relationship between government agencies and the industries they oversee.
DSA opposes ‘harmful’ final rule, warns of uncertainty ahead for direct sellers
By: SSN Staff
On Jan. 10, 2024, the U.S. Department of Labor (DOL) published a long-awaited Final Rule for classifying independent contractors under the Fair Labor Standards Act (FLSA). Set to go into effect on March 11, 2024, the Final Rule—Employee or Independent Contractor Classification Under the Fair Labor Standards Act—will rescind the 2021 Independent Contractor Rule and, according to the DOL, will bring the DOL’s guidance more in line with current case law, as well as long-standing judicial precedent.
Emphasizing that the Final Rule was enacted to safeguard employees who may be misclassified as independent contractors, the DOL emphasizes that it does not wish to disrupt the industries utilizing independent contractors.
Core Factors vs. Totality of Circumstances Test
Top executives share their perspective on timing, preparation and clarity of purpose
By: Jenna Lang Warford
“We wanted to… make it more hip, more fun, but we did not want to disconnect with the overarching brand.” — Lela Tucker, Executive Vice President Marketing, Bella Grace Global
The trick to successful rebranding, according to Harvard Business Review’s November 2023 podcast, is to keep as much “cumulative advantage” as possible.
“The modern fantasy about wow, business is changing so quickly. You’ve got to keep morphing and changing, updating your brand, getting a new visual identity. Don’t do that. Why? …because you interrupt habit,” says Roger Martin, professor emeritus and former dean of the Rotman School of Management at the University of Toronto (Canada).
Navigating deal-making risks in the direct selling channel amid evolving regulatory standards
By: Troy Keller, Michael Lindsay and Anthony Badaracco
Mergers and acquisitions is an important growth strategy in many industries, and the direct selling space is no different. Companies in this sector tend to embrace a variety of deal types. The higher-profile deals may involve a major player in the industry acquiring a peer company.
These types of transactions can be transformative, but they also tend to be big bets for the acquirer. Another important approach involves moving upstream by acquiring manufacturing capabilities and even agricultural production.