covid-19
Tupperware, Herbalife, USANA, Primerica lead 2020 growth; LifeVantage stumbles
By: Dave Rauf
Tupperware
Tupperware’s turnaround story continues to evolve.
The maker of food storage containers, kitchen goods and beauty products reported its second consecutive quarter of year-over-year sales growth in the fourth quarter of 2020, according to recently released earnings.
Fourth-quarter revenue and profit were both up in the three-month reporting period. And company executives say they’re more confident that improving financials are a sign the direct selling giant is on the path to recovery after years of revenue declines and falling stock prices.
Direct sellers rewarded with new insights after adjusting to challenges of pandemic
By: Claire Wilson
We are coming to learn that the
in-person aspect isn’t as important as we thought it was.—Sean Eggert, CEO, Hanna Shea Executive Search
COVID-19 forced many changes to commerce over the past 12 months. With the rollout of vaccines and a gradual return to normal social interactions, business practices will begin to shift back as well.
Use of the strict ‘ABC’ test for independent contractor status is still a point of contention in proposed U.S. legislation
By: Brian Bennett
Passage of the PRO Act by the full U.S. House of Representatives is the biggest shot across the bow to independent contractor status in recent history.
One of the core issues for the Direct Selling Association (DSA) and direct selling throughout our storied history has been protecting the independent contractor status of the salesforce. When legislation goes to undermine that relationship, it has the potential to throw into disarray our way of doing business. H.R. 842, the Protecting the Right to Organize (PRO) Act, would do just that.
Undeterred by expected Supreme Court loss, advocates push Congress to strengthen FTC
By: David Bland
Taking money away with civil remedies is not going to keep serious bad guys from doing what they do. The only solution there is cooperation with criminal enforcement authorities to take away their freedom.
—William Kovacic, Former Chair, Federal Trade Commission
Consumer advocates and Federal Trade Commission (FTC) proponents continue to have the ear of Congress in their push to bolster the full range of the FTC’s enforcement powers under the looming U.S. Supreme Court decision this summer—AMG Capital Management v. FTC—one that will determine the agency’s authority to obtain monetary awards under section 13(b) of the FTC Act.
How core values and COVID-19 shaped TLC
By: Teresa Day Craighead
Company Profile:
Founded: 1999
Location: Fair Haven, Michigan
Website: totallifechanges.com
SSN: What is your book about?
JF: I never thought our story was unusual; you start in a one-bedroom, and you work your way up. But we’re in that business model where people want to be a part of a community and a culture, and having the book helps point to that. The book talks about our journey from factory workers to entrepreneurs, to network marketing to owning a company that developed a culture we value. In Detroit, Michigan, everybody works at the Big Three (Ford, General Motors and Chrysler automobile manufacturers), in some way. And it’s that “dream” job; you get the security, the full benefits, and the pension after 30 years. John (Licari) and I met on the line there, and we quickly realized it wasn’t for us.
Direct sales companies should prepare for a new wave of regulatory actions
By: Brent Kugler, Guest Contributor
Companies should take the time to consider if their plans hit the guardrails laid out by the most recent statements and actions of regulators.
Like it or not, the legal requirements for multi-level-marketing (MLM) compensation structures have changed in recent years. Many existing comp plans used by direct selling companies for years may now, if challenged, be considered non-compliant by the Federal Trade Commission (FTC). Indeed, comp plans considered to be compliant as recently as two years ago may today run afoul of the FTC’s latest criteria for evaluating compensation structures.
Digitizing new life into an iconic brand
By: Teresa Day Craighead
Founded: 1973
Executive: Bob D’Loren
Location: Dresden, Ohio
Website: Longaberger.com
SSN: What motivated you to acquire Longaberger last year?
At Xcel brands, we were looking for something in the home sector to diversify our category offering and reach the consumer directly, and I saw the opportunity to acquire the company. I’ve always been excited about iconic brands. I like to say that icons live forever. Sometimes they just need a little bit of tender, loving care to get people reengaged with the brand.
More than 50 enforcement actions taken in ‘Operation Income Illusion’
By: Jennifer Mills
On Dec. 14, the Federal Trade Commission (FTC), along with 19 federal, state, and local law enforcement partners announced a nationwide crackdown on “scams that target consumers with false promises of income and financial independence,” which, they say, have been particularly rampant during the pandemic.
The regulatory agency initiated four new enforcement actions and one new settlement alleging deceptive income claims in violation of the FTC Act and noted that these actions are part of its broader initiative “Operation Income Illusion,” intended to dramatically increase claims enforcement.