DSA
Companies in the channel experience increases in sales and enrollments
By: Jenna Lang Warford
The Direct Selling Association (DSA) has reported that 60 percent of U.S. direct selling companies responding to the Quick Pulse surveys it conducted over the course of the COVID-19 outbreak report a positive impact from the pandemic. Data was last gathered Dec. 7-9.
The channel appears to have demonstrated a strong ability to flex to a virtual environment to sustain income for entrepreneurs, unlike other gig economy opportunities.
Please log in (or register) to continue viewing this content.
By: Peter Marinello
Because the industry made the bold decision to commit to third-party self-regulation when it did, DSSRC was able to socialize its goals and objectives with direct selling companies and familiarize the industry with the program’s jurisdictional purview and process of review before the coronavirus hit.
The direct selling industry worked diligently and cooperatively to establish and implement an industry self-regulation program that celebrates its third year this month. The BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC) administers that program, helping direct selling companies across the industry abide by the high standards first established by the Direct Selling Association (DSA) Code of Ethics.
Please log in (or register) to continue viewing this content.
PEOPLE ON THE MOVE – JANUARY
ASHISH KHAN, AMWAY
Ashish Khan has joined Amway as chief technology and platform officer bringing nearly 30-year career in brand technology and enterprise architecture. He previously worked for the Estee Lauder Companies and Staples. He will focus on the customer shopping experience, digital innovation, technology partners, and data and analytics.
Regulators warn enforcement is a ‘top priority’ at a recent industry conference
By: David Rauf
“I caution you to stay on the straight and narrow because now, more than ever, this is a top enforcement priority for me, and I hope, the agency.”
—Noah Phillips, Commissioner, Federal Trade Commission
A commissioner with the Federal Trade Commission (FTC) voiced a tough message for the direct selling community at a recent online event, saying the regulatory agency will remain aggressive in its approach to policing the channel.
Please log in (or register) to continue viewing this content.
Lack of variability, faulty assumptions cited as ‘fundamental logical errors’
By: Teresa Craighead
“What they are doing in this paper is trying to put forward a logical argument to set up a premise, to analyze it and to draw conclusions. The problem is that they commit some really basic logical errors, and you don’t have to be a logician to understand them.”
—Dr. Anne Coughlan, professor of marketing, Kellogg School of Management, Northwestern University
On October 13-15, 2020, the Direct Selling Association (DSA) held a virtual Legal and Regulatory Seminar that included a session discussing the Andrew Stivers, Douglas Smith, and Ginger Jin paper, “The Alchemy of a Pyramid” with three experts: Dr. Anne Coughlan, the Polk Bros. Chair in Retailing and professor of marketing at Kellogg School of Management, Northwestern University; Dr. Patrick Brockett, the Gus Wortham Memorial Chair in Risk Management and Insurance at McCombs School of Business, University of Texas at Austin; and Dr. Linda Ferrell, Marketing Department Chair and professor of marketing at Harbert College of Business, Auburn University. Comments in this article are taken from that discussion.
In the July 2020 issue of Social Selling News, we published an article, titled “FTC Reveals True Goals in Research Paper” (page 24), in which we discussed some of the conclusions reached in a paper published by SSRN, an international social sciences research journal.
Please log in (or register) to continue viewing this content.
U.S. Department of Labor attempts to tackle issue once and for all
By: David Rauf
“Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make to pursue the freedom and entrepreneurialism associated with being an independent contractor.”
—Eugene Scalia, Labor Secretary, U.S. Dept. of Labor
“The goal would be to properly classify the field as independent contractors not subject to any test.”
—Will Miller, attorney, Buchlater
Under a new proposed Trump administration regulation, direct selling companies could finally gain some clarity on which workers may be classified as independent contractors.
Please log in (or register) to continue viewing this content.
Guidelines go into effect Aug. 1
By: Courtney Ronan
The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, has released new guidance on earnings claims. This new guidance defines and classifies earnings claims and is provided to help ensure direct selling companies and their independent distributors are making representations that comply with legal and self-regulatory standards.
Please log in (or register) to continue viewing this content.
The Direct Selling Self-Regulatory Council (DSSRC) and DSA today released new Guidance on Earnings Claims that defines and identifies earnings claims to ensure all representations made by direct-selling companies or members of their salesforce comply with legal and self-regulatory standards. See the Full Document.
The FTC remains our most written about topic
Happy Birthday to us! The month marks our second year in operation providing the direct selling channel with the news and information you need in order to make the best decisions for your businesses.
It’s been a privilege to serve you in this way, and we look forward to many years to come. We certainly have had no lack of topics recently with the FTC’s aggressive stance on claims, and the COVID-19 virus disrupting all business.