FTC

Your comments to the FTC will shape the new Earnings Claims Rule

Hello friends! What an exciting and inspiring month it has been for me personally as I have continued to speak with and learn from the executives and thought leaders of direct selling—truly the movers and shakers (and disrupters!) of this dynamic and forward-looking channel.

I had the great privilege of having many of these recent conversations and interactions in person at the Direct Selling Legal and Compliance Summit that took place last month in Austin, Texas. As the media sponsor of this important event, I am deeply grateful to the organizers for having me, as well as to all of the Summit participants who took time to speak with me about Social Selling News. I appreciate them sharing their opinions, suggestions, and compliments on our monthly endeavor to keep you informed and up to date on the news and trends affecting your social selling business.

Adding to the excitement of the event and, in particular, to the panel I hosted on the many weapons the FTC is deploying against direct sellers, was the Commission’s open meeting taking place that same hour to discuss a new earnings claims rule targeting direct sellers, for-profit colleges, and gig economy platforms. I mean, what are the odds?

Be sure to read this month’s cover story recapping this important regulatory meeting, including the commissioners’ statements and opinions on their motivations to pursue the new rule, as well as some public comments that were featured from this channel’s most dedicated detractors.

Speaking of public comments, the Commission voted 4-0 to proceed with this rulemaking and to invite all interested parties to file comments and data with the agency on this critically important matter.

The soon-to-be-published Federal Register Notice for this proposed earnings claims rule provides 28 questions that the commissioners are seeking feedback on to help them craft the new rule. This document can be found here: https://www.ftc.gov/policy/federal-register-notices/16-cfr-part-462-trade-regulation-rule-use-earnings-claims

As the open FTC meeting demonstrated, the opponents of direct selling already have the ear of regulators, and the Commission has set a 60-day window to hear from YOU. I encourage you to participate in this process!

The central takeaway message I came away with at DSLC 2022 was that no one is focused more on compliance and growing their businesses in accordance with all state and federal guidelines than the companies leading this channel. 

The FTC must hear this message directly from those who are creating and benefiting from these direct selling opportunities. Whether it be a C-suite executive eager to convey their company’s rigorous compliance program or a brand partner telling the commissioners how important the supplemental income is to their family budget, thoughtful comments from the earnest voices of this channel will make an impact on the FTC’s ultimate decisions. The clock will soon be ticking on this opportunity.

I thank all of you again for your support of SSN, and please keep the suggestions and input coming.