Features
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to publish regulations and rules that exceed the agency’s statutory authority or initiate enforcement actions based on unpublished, subjective criteria.”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.
Elevating direct selling through leadership at the speed of trust
Bio: With a 30-year career, Garrett McGrath is a leader who has built field organizations of 200,000+ distributors and customers in 21 countries together with his wife, Sylvia, and served as master distributors and special advisors. In addition to being a keynote speaker, leadership coach and mentor, McGrath contributes to industry-wide conferences, publications, and boards. Recently he led the corporate team of The Happy Co., a publicly-traded network marketing company, helping it grow to $130+ million in annual sales, and serving as its CEO/president. Since 2012, he has also served as president of the nonprofit Association of Network Marketing Professionals (ANMP).
SSN: Tell me about your work with the ANMP.
GM: The Association of Network Marketing Professionals (ANMP.com) is a grassroots 501(C)(6) organization, founded in 2004. As a nonprofit, the ANMP is the only professional association that includes all three stakeholder groups within direct selling together: the independent distributors in the field; the company CEOs, executives, and founders; and the suppliers, supporters, and advocates serving the channel.
Interactive videos boost engagement and sales in e-commerce
By: John Lietsch, Guest Contributor
In today’s digital age, video has become one of the most powerful tools for marketing and advertising. With the rise of e-commerce, brands are looking for new ways to make their videos more engaging and interactive, and shoppable videos have emerged as a popular, effective, and profitable solution. But what exactly are shoppable videos, and how can they help brands and retailers drive sales?
What Are Shoppable Videos?
Company founders are reaching an even wider audience through authorship
“John Maxwell told me, ‘Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.” —Logan Stout, Founder and Chairman, IDLife
Impact, inspiration, and legacy are driving forces in the direct selling channel—not just for field members but often for company founders, executives, and employees. In fact, what leaders do can be measured in thousands and even tens of thousands of people impacted.
However, there is a “next level,” and noted leadership expert and author John Maxwell pointed it out in a conversation with IDLife’s founder and chairman, Logan Stout. “Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.”
Commission addresses AI-related consumer concerns to ensure ethical use and market integrity
By: David Bland
“AI, in particular generative AI, is still evolving rapidly, but it already has the potential to transform many industries and business practices. Notably, there is no AI exemption from the laws on the books.” – FTC
In the continuously evolving landscape of direct selling, 2023 witnessed the emergence of artificial intelligence (AI) and the tools it powered as a transformative force within the channel. As in other business sectors, direct selling companies have begun integrating this technology into their core operations, harnessing AI to enhance customer engagement, optimize supply chain management, and refine sales strategies with advanced analytics and predictive modeling.
Regulators are also keeping a close eye on these technologies. As businesses across the country embrace these new tools, the Federal Trade Commission (FTC) has made it known that it is vigilantly monitoring the marketplace and company behavior on behalf of consumers. The Commission’s Office of Technology is tasked with analyzing AI’s trends and advancements as well as its risks to ensure that these emerging tech products are used by businesses in a manner that is both ethical and compliant with existing consumer protection laws.