Since its inception, the direct selling channel has prided itself on bucking convention. From introducing the gamechanger of residual income to openly eschewing the traditional 9-to-5 workday, direct selling companies have aimed to divert from the norm.
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Agency claims ‘money transfer scheme’ in latest enforcement action
By Dave Rauf
The vast majority of participants in Success By Health lost money as the company’s compensation plan rewarded distributors based on how many new recruits they could sign up and how much inventory they could sell to those same recruits, not from retail sales.
—Paraphrased from FTC suit against Success by Health
“The FTC is trying to rewrite the law through enforcement proceedings.”
—Brent Kugler, partner, Scheef & Stone
The Federal Trade Commission (FTC) has dropped the hammer on another MLM, marking the third pyramid scheme case brought against a direct seller in the last several months as part of a series of enforcement actions that have rattled the industry.
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