Features
By: Peter Marinello, Guest Contributor
Peter Marinello is Vice President at BBB National Programs and Director of DSSRC.
Transparency is a hallmark and cornerstone of all industry self-regulatory endeavors, and the independent watchdog
program for the direct selling industry, BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC), is no exception.
DSSRC, an independent program developed in partnership with the Direct Selling Association (DSA), was designed to help support accountability and consumer protection in the direct selling industry.
The council’s role is to help ensure that direct selling companies are making truthful, accurate claims about the products they sell and about the opportunity to earn income with the business.
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to publish regulations and rules that exceed the agency’s statutory authority or initiate enforcement actions based on unpublished, subjective criteria.”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
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.
Companies are recognized for environmental initiatives, while regulators address green marketing claims
By: SSN Staff
Amid an ongoing transition toward sustainability and concerns about environmental impact to the planet, the direct selling business channel is gearing up for a transformative year ahead. A multitude of companies are ramping up their eco-friendly practices, designing more environmentally safe products, and reevaluating their supply chains to reduce their carbon footprint as well as ensure compliance with U.S. environmental marketing guides and the evolving green laws in Europe.
This proactive approach aligns with the rising consumer demand for sustainable products and with other companies that have embraced environmental stewardship. With an increasing awareness of environmental issues, consumers are actively seeking products and services that leave a smaller ecological footprint. In response to this demand, direct sellers are placing sustainability at the forefront of their business models, driving innovation and promoting eco-conscious consumer choices.