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FTC Puts Channel on Notice
Cover StoryDirect SellingFeatures

FTC Puts Channel on Notice

Direct sellers’ earnings claims and testimonials under scrutiny

By:  David Bland
I think the FTC’s current aggressive posture is that they are trying to hold high-level executives liable for the actions that happened at a very low level, across a broad array of businesses—not just multi-level marketing or even the earnings claims area. —Maureen Ohlhausen, Former Acting Chairman (2017 to 2018), FTC
The Federal Trade Commission (FTC) issued its third Notice of Penalty Offenses in as many weeks on Oct. 26. After putting 70 for-profit colleges on notice earlier in the month for making deceptive claims regarding graduates’ job and earning prospects, followed by a Notice to 700 national advertisers about misleading endorsements, testimonials, and fake product reviews, the Commission turned its focus to companies that offer money-making opportunities. 

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December 1, 2021 0 comment
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3rd-Quarter Sales Down for a Few Large Companies
Cover StoryDirect SellingFeatures

3rd-Quarter Sales Down for a Few Large Companies

Herbalife, Tupperware, Primerica come back to earth after 2020 surge; Nature’s Sunshine remains strong

Herbalife

Herbalife’s sales softened during the third quarter, following a blockbuster period a year ago.  The company endured a double-digit revenue dip, while sales declined in several geographic regions.  Still, CEO John Agwunobi said the direct selling giant remains on track to end 2021 with another record sales year. Herbalife reported total net sales for the third quarter totaled $1.4 billion, down 6 percent compared to a year ago when the seller of supplements and weight-loss products recorded what was then a best-ever three-month period for sales.

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December 1, 2021 0 comment
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EU Regulators Issue Sweeping Proposals Affecting Direct Sellers
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EU Regulators Issue Sweeping Proposals Affecting Direct Sellers

Cultural differences create challenges and opportunities for regulators and companies

By:  David Bland
European policy and decision-making are always cyclical. There are different cycles of policymaking, and we’re in different phases of policy proposals that affect the direct selling sector. —Laure Alexandre, Executive Director, SELDIA
On Jan. 7, 2020, the European Parliament and Council of the European Union entered into force a comprehensive legislative Directive. Often referred to as the Omnibus Directive as part of the “New Deal for Consumers,” Directive (EU) 2019/2161 was crafted to bolster consumer rights within today’s modern digital landscape.

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November 1, 2021 0 comment
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US Direct Sellers Join Peers Around the World in Giving Back
Cover StoryDirect SellingFeatures

US Direct Sellers Join Peers Around the World in Giving Back

The DSA and WFDSA release philanthropy statistics

Through both up-trends and down-trends, through recession periods, and through a pandemic, one of the few constants within the direct selling channel has been its commitment to philanthropy. Companies large and small are providing relief and support to causes around the world to improve lives as well as the environment and the planet.  In the World Federation of Direct Selling Associations’ (WFDSA) 2020 Direct Selling Worldwide Corporate Philanthropy Survey, data was collected on the origins of surveyed companies’ philanthropic support, their partnerships with charities and non-governmental organizations (NGOs), and the criteria for this support. The report also analyzed the charitable contributions of independent representatives in the field.

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November 1, 2021 0 comment
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New Era of the Penalty Offense Authority Begins
Cover StoryDirect SellingFeatures

New Era of the Penalty Offense Authority Begins

FTC puts hundreds of companies on notice in span of two weeks

By:  David Bland On two separate occasions last month, the Federal Trade Commission (FTC) resurrected a rarely used weapon to put a total of 770 U.S. companies and entities, including an entire business sector, on notice for punitive monetary action should they be found to violate Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices. On Oct. 5 the Commission announced that it was sending a Notice of Penalty Offenses to 70 of the largest for-profit colleges and vocational schools in the country to notify them that false promises about graduates’ future job and earnings prospects would be met with significant financial penalties. Eight days later, the FTC sent a second set of Notices to 700 companies, including several Fortune 500 corporations, across a multitude of industries and business channels. This notice was in regards to deceptive endorsement practices, including fake product reviews.

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November 1, 2021 0 comment
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California Legalizes CBD in Foods, Supplements and Cosmetics
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California Legalizes CBD in Foods, Supplements and Cosmetics

Contentious bill sets different rules for several hemp products

CBD advocates and sellers are celebrating a big win this month after California Governor Gavin Newsom signed into law AB-45, a bill legalizing the sale of dietary supplements, foods, beverages and cosmetics containing the popular hemp-derived cannabinoid.  After nearly three years of debate and negotiations with a slew of opponents, manufacturers and sellers of these products, including many direct selling companies and their suppliers, will finally be able to access the largest state market in the country, representing 20 percent of U.S. wellness consumers.

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November 1, 2021 0 comment
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The DSSRC Hits Its Stride in 2021
Cover StoryDirect SellingFeatures

The DSSRC Hits Its Stride in 2021

Channel watchdog counsels companies, maintains dialogue with regulators

By:  David Bland
For the cases that get to the level of a DSSRC referral, usually there’s an issue of systemic patterns of behavior that are going on—particularly with the claims; it is rarely a one-off post, and, with respect to earnings claims, in particular, it’s often the tip of the iceberg that leads the FTC to a much deeper rabbit hole. — Peter Marinello, Vice President at BBB National Programs and Director of DSSRC
In 2019, the direct selling channel officially became a self-regulated business sector. Two years on, and the channel is reaping the benefits. Founded by the Direct Selling Association (DSA) and administered by BBB National Programs, the Direct Selling Self-Regulatory Council (DSSRC) is an independent, non-profit organization that is continuing its mission of oversight through monitoring, investigation, and enforcement of the regulations and ethics standards that have been set in place for direct sellers by the Federal Trade Commission (FTC) and the DSA.

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October 1, 2021 0 comment
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