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Direct Selling Association

The DSSRC Hits Its Stride in 2021
Cover StoryDirect SellingFeatures

The DSSRC Hits Its Stride in 2021

Channel watchdog counsels companies, maintains dialogue with regulators

By:  David Bland
For the cases that get to the level of a DSSRC referral, usually there’s an issue of systemic patterns of behavior that are going on—particularly with the claims; it is rarely a one-off post, and, with respect to earnings claims, in particular, it’s often the tip of the iceberg that leads the FTC to a much deeper rabbit hole. — Peter Marinello, Vice President at BBB National Programs and Director of DSSRC
In 2019, the direct selling channel officially became a self-regulated business sector. Two years on, and the channel is reaping the benefits. Founded by the Direct Selling Association (DSA) and administered by BBB National Programs, the Direct Selling Self-Regulatory Council (DSSRC) is an independent, non-profit organization that is continuing its mission of oversight through monitoring, investigation, and enforcement of the regulations and ethics standards that have been set in place for direct sellers by the Federal Trade Commission (FTC) and the DSA.

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October 1, 2021 0 comment
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US Remains Attractive Market for Channel Expansion
Direct SellingNewsSpecial Report

US Remains Attractive Market for Channel Expansion

Direct sellers should still be prepared for high, competitive threshold and tough regulatory landscape

By:  Stephanie Ramirez
In this new era of social selling in the United States, there is a strong focus on customers, so you need a good product. The brand and products are as important as the opportunity. —Ray Urdaneta, CEO and Co-Founder, MONAT Global
You have to decide beforehand what you’re open to changing and what you’re not open to changing, but that’s going to drive the whole modeling process and the whole testing process. —Jacques Mizrahi, CEO, SwissJust USA
The United States is a reliable and consistent economy with a long-standing history of growth. According to the economics research firm, Focus Economics, it will most likely retain the title as the world’s largest economy, with a forecasted GDP of $25.3 trillion (USD) in 2024. In addition to the favorable economic climate, in comparison to many other countries, the U.S. is a wealthy nation with over 320 million people, many of whom like to shop. 

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October 1, 2021 0 comment
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How Pending Legislation Could Affect Your Company’s Compliance Strategy
Cover StoryDirect SellingFeaturesVoices

How Pending Legislation Could Affect Your Company’s Compliance Strategy

By:  Larry Steinberg and William Miller
For companies that use web-monitoring services to identify possible policy violations, is it a reasonable business practice to limit the search parameters to only go back a certain number of years?
When it reversed 40 years of appellate precedent by ruling that Section 13(b) does not authorize the Federal Trade Commission to seek monetary relief, the Supreme Court relied not only on the language of Section 13(b), but also on the presence of other provisions in the FTC Act, which expressly allow the FTC to obtain monetary relief for consumers. 

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September 1, 2021 0 comment
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The FTC is on the Warpath — Time to Rally the Troops (Op-Ed)
Cover StoryDirect SellingFeaturesOpinion

The FTC is on the Warpath — Time to Rally the Troops (Op-Ed)

As pressure mounts, what we do now as an industry matters

By:  Jonathan Gilliam, CEO, Momentum Factor
Opponents of the channel appear to have taken a war footing, and what we collectively do now as an industry will determine the future of this great business model we love.

Over the past 18 months, the Federal Trade Commission’s targeting of the direct sales channel has become increasingly aggressive and the channel may now be under the most intense regulatory and public scrutiny it has ever faced. Opponents appear to have taken a war footing, and what we collectively do now as an industry will determine the future of this great business model we love. 

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September 1, 2021 0 comment
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Channel Sales Soar in 2020, Report Finds
Cover StoryDirect SellingFeatures

Channel Sales Soar in 2020, Report Finds

DSA Survey highlights direct sellers’ resilience during pandemic year

The results are clear—a record-breaking year and an unequivocal demonstration that direct selling is dedicated to serving America. —Joseph N. Mariano, President, DSA
Direct selling companies invested significant resources to transform their companies virtually. —Ben Gamse, Director of Industry Insights, DSA
The Direct Selling Association (DSA) released its Growth and Outlook Survey results for 2020 showing a record level of growth for the channel in one of the most economically challenging years in U.S. history.  Despite the onset of the COVID-19 pandemic in March 2020 and the subsequent shutdowns that ended the longest period of U.S. economic expansion on record, the DSA reported channel growth of 13.9 percent over the previous year, reaching a record $40.1 billion in 2020 retail sales. This is quadruple the growth of U.S. retail sales overall, which the U.S. Department of Commerce reported was 3.4 percent for 2020.

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July 1, 2021 0 comment
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FTC to Review Business Opportunity Rule by End of Year
Cover StoryDirect SellingFeatures

FTC to Review Business Opportunity Rule by End of Year

Commissioner Chopra pushes for removal of direct selling exemption

By:  David Bland
It is alarming that the FTC seems to have prejudged the public comment process and concluded that the scope of the Rule should be expanded to impose a new regimen of rules and regulations on the direct selling industry. —Larry Steinberg, Chair of Multilevel Marketing Industry Group, Buchalter
The Federal Trade Commission (FTC) announced on June 14 a review of the Business Opportunity Rule by the end of the year. The Rule was first proposed in 2006 and was finalized with amendments in 2012 after direct selling companies and the Direct Selling Association (DSA) vigorously argued for, and ultimately received, a generalized exclusion from the Rule.

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July 1, 2021 0 comment
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Direct Selling Critics, Old and New, Join Regulators at Caustic 2-Day Conference
Cover StoryDirect SellingFeatures

Direct Selling Critics, Old and New, Join Regulators at Caustic 2-Day Conference

Organizers block channel representatives from contributing

By:  David Bland
There were a number of factors that led us to think that the timing was right for this type of conference, including indications from the Federal Trade Commission that they are tightening focus on the MLM industry. —Douglas M. Brooks, Attorney
Anti-MLM influencers appear to be more interested in fostering a cottage industry of their own than they are to an inclusionary dialogue on how best to promote entrepreneurship. —Direct Selling Association
For decades, direct selling’s opponents have worked to challenge the channel from the relatively confined spaces within their respective legal, academic and media circles.  The occasional high-profile court case would generate publicity for a few news cycles, and newspaper and magazine articles would follow with passing coverage. 

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June 1, 2021 0 comment
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Legal Battle Is Brewing Over Independent Contractor Rule
Cover StoryDirect SellingFeatures

Legal Battle Is Brewing Over Independent Contractor Rule

DSA-supported lawsuit challenges President Biden’s attempt to roll back Trump’s rule

By:  Dave Rauf
The DOL’s effort to rescind the final rule runs counter to the realities of the modern economy. —Evan Armstrong, Founding Member, Coalition for Workforce Innovation
We will continue working with the Administration and Congress to ensure direct sellers are clearly classified as independent contractors under all federal laws. —Brian Bennett, Vice President of Government Affairs and Policy, Direct Selling Association
An array of business groups are suing the U.S Department of Labor over its decision to rescind a rule that would set parameters for when companies—including direct sellers—could classify workers as independent contractors. At issue: a Donald Trump administration regulation published in late January, about two weeks before the White House was set to switch hands, making it easier for businesses to classify workers as independent contractors. The rule marked a major victory for the direct selling channel, along with gig economy companies specializing in ride-sharing and food delivery.

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May 1, 2021 0 comment
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Good Chemistry for Direct Sellers Finding Success with CBD
Direct SellingFeaturesNewsSpecial Report

Good Chemistry for Direct Sellers Finding Success with CBD

Companies large and small reap rewards of hemp reclassification and new cannabinoid discoveries

By:  Stephanie Ramirez
“I would say that our company had a massive part in bringing about the federal legislation in 2018 that changed the Farm Bill.”  Blake Schroeder, CEO, Kannaway
“We make it easy to customize your core nutrition, and CBD has just been one of those things that has been a great fit.”  Ryan Montgomery, CEO, Reliv
According to a recent Direct Selling Association (DSA) consumer trends study, the health and wellness marketplace is changing rapidly. Direct sellers must continuously raise their own bar with a consistent flow of new products and communications to meet consumer demand for the latest natural compounds and plant derivatives. The rising implementation of new product lines mirrors the latest technological advancements in agriculture and chemistry. 

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May 1, 2021 0 comment
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ComplianceLegalRisk Roundup

The PRO Act: Bad for Direct Selling

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.

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April 1, 2021 0 comment
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