To Show at Featured Box

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to publish regulations and rules that exceed the agency’s statutory authority or initiate enforcement actions based on unpublished, subjective criteria.”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

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.

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.