Texas direct seller successfully defends itself against all charges, business model upheld
By: David Bland
“…any company without a healthy preferred customer program would be well advised to give serious consideration to instituting and supporting such a program.” – Larry Steinberg, Chair, Multilevel Marketing Industry Group, Buchalter
In a pivotal ruling, Dallas-based direct sales firm Neora has prevailed against the Federal Trade Commission (FTC) in a multi-year legal case that has drawn the focus of industry executives, direct selling participants and regulatory agencies. The U.S. District Court for the Northern District of Texas, Dallas Division, announced its decision on Sept. 28, 2023, stating that the FTC failed to provide substantial evidence to support its claims that Neora operated as a pyramid scheme. After a seven-year battle, the ruling comes as a major win for Neora and the direct selling channel at large, affirming the legality of the company’s business model.
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