March Quick Takes: What is the greatest compliance issue of the near future?

What is the greatest compliance issue of the near future?

Kerry Tassapoulous, Vice President, Mary Kay

I see the greatest challenge in the legal/compliance area actually being the greatest opportunity to change the discussion around direct selling through the successful implementation of the Direct Selling Self Regulatory Council (DSSRC). If the companies using a direct, person-to-person approach can focus on great products, great service, and clear information about the business opportunity along with an effective roll out and execution of the DSSRC, then the legal and compliance challenges in the next two to three years should be lessened. Businesses of all types are being asked for more transparency about their products, supply chains, and treatment of employees. Why not take advantage of this opportunity for more effective self regulation to eliminate one of the challenges the industry is facing?

Jonathan Gelfand, Chief Legal Officer, Beachbody

We will always see regulatory fluctuations depending upon who is in the White House as well as with our attorneys general, but I believe the greatest compliance challenge facing our industry continues to be lifestyle/income claims and product claims. Each company needs to actively educate, monitor and correct its distributors, which gets more difficult as technology and social media platforms continue to evolve. It is also difficult to walk the fine line between protecting the company from what the FTC says is one of their largest areas of concern while still allowing the business side of the company to grow and remain competitive. This is the “but everybody else allows it” we hear from our marketing departments and the “I worked hard and genuinely earned this money so why can’t I talk about it” from our top distributors.