Features

Through a formal response, the Canadian DSA voices concerns that proposed fees will have an adverse impact on direct sellers

By:  David Bland

In a significant development that could impact the accessibility and cost of natural health products (NHPs) across Canada, the country’s national health department, Health Canada, has announced a proposed fee aimed at offsetting regulatory costs. Responsible for overseeing various aspects of health standards and wellness policy to ensure public safety, Health Canada unveiled the plan on May 3, revealing its intention to levy a fee on manufacturers and distributors of natural health products as part of an effort to enhance oversight and ensure product safety. The department closed public comments and consultations on the proposal on Aug. 10, 2023, and is working toward an implementation date of April 1, 2025.

While proponents argue that the fee could bolster consumer confidence and quality control, critics express concerns about potential cost burdens on small and medium-sized businesses and how that could impact consumers who rely on these products. Opponents to the new fee also warn that Canadian consumers may order more non-compliant health products from outside Canada.

Acquisitions, new products and a strong Chinese market benefit major direct sellers

By:  Dave Rauf

Primerica 

Primerica reported an uptick in sales and profit during the second quarter of 2023, spurred by growth in its life insurance division and improved results in its senior health business. 

The Georgia-based life insurance and financial services company reported profit of $144.5 million for the quarter, an increase of 13% compared to the period a year ago. Sales were also up 3% to about $688 million. 

CEO ​​Glenn Williams told analysts during a recent earnings call that second quarter results reflect continued and predictable growth in the company’s life insurance division. 

New survey sheds light on gig workers and their evolving roles in the trillion-dollar industry

By:  Stephanie Ramirez

“Pre-Covid, people were saving the money they made from their gigs. Post-Covid, people are using their gig earnings to pay household bills. … If that continues, that's a major change.” — Dr. Robert Peterson, Professor of Marketing and  Chair of Business Admin., The University of Texas at Austin 

In a comprehensive effort to unravel the intricate dynamics of the gig economy, a new survey sponsored by PayQuicker and the Ultimate Gig Research Project has been released, providing critical insights into the ever-changing world of gig workers in the United States. The research, based on surveys conducted in July 2020 and April 2023, forms an integral part of the extensive Ultimate Gig Research Project, dedicated to empirically assessing gig economy trends to enhance business strategies and inform public policy decisions. 

A growing number of former distributors are using the statute to allege exploitation through misclassification

By:  David Bland

The Beachbody Co., a fitness and wellness company known for its home workout programs, is being sued by one of its former distributors in a dual individual and class-action lawsuit filed under California’s Private Attorneys General Act (PAGA). The May 2023 filing was brought by Jessica Lyons, who joined Beachbody’s direct selling division, Team Beachbody, in 2016. Lyons’ lawsuit alleges that The Beachbody Company, Inc. (re-branded in 2023 as BODi) is exploiting its distributors (called Coaches) by misclassifying them as independent contractors instead of employees.

The 137-page lawsuit alleges that Beachbody, by misclassifying its Coaches, violated a wide variety of provisions of the California Labor Code that apply to employees, such as not paying them a minimum wage, not providing meal and rest breaks, failing to keep payroll records and wage statements, not reimbursing business expenses, and failing to pay unpaid wages at the time of separation of employment. The lawsuit alleges that all of these actions constitute unfair competition, in violation of California law.

The clock is ticking to avoid delisting on NYSE

By:  Dave Rauf

“The Company intends to develop and submit this business plan within the required timeframe, and to identify measures that are in the best interests of the Company and its stockholders.”  - Tupperware

Tupperware is at risk of getting delisted by the New York Stock Exchange (NYSE) for noncompliance, following the direct-selling giant disclosing in April that it might go bankrupt. 

The latest in a growing list of issues for the maker of food storage containers and kitchen goods is the result of its average global market capitalization being less than $50 million over a 30-trading-day period. Also, its stockholders’ equity was less than $50 million when last reported, according to a regulatory filing.