Agency maintains its hard-line stance on coronavirus-related claims
By: David Rauf
“It almost seems like what the FTC is saying is you can’t represent that you have a business opportunity.”
—Michael Collins, President and CEO, M&L Collins Group
“The FTC is going to be very diligent. We’re not going to tolerate these claims.”
—Lois Greisman, Assoc. Director of Marketing Practices, Federal Trade Commission
The Federal Trade Commission (FTC) has issued warning letters to six more direct selling companies over alleged misleading product and earnings claims related to the coronavirus. This represents the latest escalation between regulators and the direct selling channel over how to market products and business opportunities during the ongoing pandemic.
June 22 decision in Liu v. SEC allows agency to seek monetary relief; major setback to limiting FTC’s authority
By: John Villafranco
John Villafranco, partner with Kelley Drye LLP
The Supreme Court issued an 8-to-1 decision on June 22 in the highly anticipated case of Liu v. SEC. The opinion, authored by Justice Sotomayor (with Justice Thomas dissenting), holds that a “ disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief,” and allows the Securities and Exchange Commission (SEC) to seek such relief under the Securities Act.
By: Mona Ameli
Mona Ameli, founder of Ameli Global Partnerships
Our industry’s objective is to provide entrepreneurship opportunities to all through a community-based approach that helps everyone to believe, belong, and become part of a company’s mission and growth. We, more than any other industry, need to be part of the solution to acknowledge, understand, commit and build systematic inclusion to truly become an opportunity for all.
The brutal killing of George Floyd and other Black Americans has brought into greater focus the challenges of systematic racism in America, as reflected in the protests all over the country and even globally. There is a critical need to understand how the often uncomfortable and tough conversations of race and inclusive diversity impact both individual direct selling companies and our industry as a whole. We can play an active and positive role in the new breakthroughs that are now possible.
By: John Fleming
Publisher’s Note: I received this letter from John Fleming concerning our channel and the social unrest generated by George Floyd’s killing. I asked him if we could reprint the letter in its entirety so that more people could benefit from his insight and thoughts.
— Teresa Craighead, Publisher
John Fleming, DSA Hall of Fame, DSEF Circle of Honor
Dear Friends,
COVID-19 has changed the game and so will the resurrection of the social justice movement.
The direct selling model has been approaching an inflection point for more than a few years. We have never experienced a threat to the health and welfare of nations as we are experiencing today. Add to that the events of the past few weeks, during which we have seen an unprecedented global outcry for repairing social injustice, and one could easily say that these are indeed the most challenging of times.
