By: David Bland
In the wake of the Omicron variant’s global surge, as COVID-19 case counts neared their peak of over 800,000 new cases per day across the U.S., the Federal Trade Commission (FTC) publicized a series of cease and desist demands it sent to 25 businesses over the past six months. Granted under the authority of the COVID-19 Consumer Protection Act, the list included four direct sellers targeted in November and December 2021.
A crucial Supreme Court ruling, FTC strategy shifts and social media challenges impact direct selling in an eventful year.
January Headlines
FTC Launches ‘Operation Income Illusion’
The Federal Trade Commission (FTC), along with 19 federal, state, and local law enforcement partners announced a nationwide crackdown on consumer scams promising income and financial independence. Although no direct selling companies were targeted by this operation, it marked a beginning to the COVID-19-era scrutiny of work-from-home-scams, pyramid schemes and coaching courses, among other businesses.
DSA Rolls Out New Compliance Certification Program
The Direct Selling Association (DSA) began a comprehensive compliance program to be made available to member and non-member companies. The Direct Selling Compliance Professional Certification Program (DSCP-CP) was created for individuals and does not certify an entire company. The program includes four three-hour online sessions for a total of 12 hours and is designed to be taken over several days. Modules include topics such as “Claims Substantiation and Disclosures”; “Product Claims”; “Monitoring and Removal of Claims from Social Media Platforms”; “The Role of Compliance in Your Organization”; and “Conveying the Right Marketing Message.”
Cultural differences create challenges and opportunities for regulators and companies
By: David Bland
European policy and decision-making are always cyclical. There are different cycles of policymaking, and we’re in different phases of policy proposals that affect the direct selling sector.
—Laure Alexandre, Executive Director, SELDIA
On Jan. 7, 2020, the European Parliament and Council of the European Union entered into force a comprehensive legislative Directive. Often referred to as the Omnibus Directive as part of the “New Deal for Consumers,” Directive (EU) 2019/2161 was crafted to bolster consumer rights within today’s modern digital landscape.
PEOPLE ON THE MOVE – August
Camelle Kent, Thirty-One
Thirty-One Gifts has named Camelle Kent as CEO. Kent assumes the role from Elizabeth Thibaudeau, who joined Thirty-One as acting CEO last July. Thibaudeau will remain a board member. Kent’s career spans over 25 years, and she has grown global brands including Gillette, Timberland, and Avon. Most recently, she was CEO at WellPet.
Dave Nash, 4Life
Dave Nash has been promoted to senior vice president of global markets at 4Life Research. Previously vice president of Greater China, Nash was hired by 4Life in 2018. He has spent considerable time in Asia on behalf of the company and will now continue his work in Asia while broadening his focus to include global sales and operations.
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