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Getting Real with Vasayo Founder and Chairman Dallin Larsen
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Getting Real with Vasayo Founder and Chairman Dallin Larsen

A direct selling veteran talks about the importance of technology and leadership in building global companies

By:  David Bland Dallin Larsen, a former Ernst & Young National Entrepreneur of the Year and Utah CEO of the Year, founded Vasayo in 2016. Prior to Vasayo, Larsen founded MonaVie in 2005 and grew that company from zero to nearly a billion dollars in annual sales in less than five years. Under Larsen’s direction, Vasayo’s philanthropic partnership with Hearts & Hands for Humanity has generated enough contributions to build more than 130 wells in Tanzania, Africa, delivering clean water to hundreds of thousands of people.  Founded: 2016 Location: Pleasant Grove, Utah Website: vasayo.com SSN: Tell us about your history in direct selling. My first experience with network marketing was with Nu Skin in 1988. I was in my late 20s and living in San Diego, California. I fell in love with the industry and what it could do for me and my family as well as others. About a year later, a gentleman called to tell me about a new company and asked that I meet with the founder. So, I interviewed with Myron Wentz, the founder of USANA. One thing led to another, and the next thing I knew I was heading up sales for that company. We launched USANA in 1991, and I was with them for roughly 10 years. That’s where I cut my teeth and gained a lot of valuable experience. 

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October 3, 2021 0 comment
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The DSSRC Hits Its Stride in 2021
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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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FTC Continues Its Mission Makeover and Streamlining of Rulemaking Procedures
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FTC Continues Its Mission Makeover and Streamlining of Rulemaking Procedures

Commission approves changes to ‘democratize the process’ and encourage public participation

In addition to formal rulemaking, the new changes will also apply to requests by certain parties [including the direct selling channel] for special exemption from FTC rules, as well as petitions related to industry guidance issued by the Commission. —Federal Trade Commission
Marking a continued effort to implement streamlining and overhauls to its rulemaking procedures authorized under Section 18 of the FTC Act, the Federal Trade Commission (FTC) held a virtual open meeting on Sept. 15, 2021. One of the items on the agenda was a vote to approve changes in the Rules of Practice and other rules affecting public access to the petition component of the FTC’s rulemaking process.

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October 1, 2021 0 comment
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US Remains Attractive Market for Channel Expansion
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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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FTC Threat: A Primer
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FTC Threat: A Primer

Your questions answered on the FTC’s new battle plan against direct sellers

By:  David Bland Is the direct selling channel under greater threat now from FTC action than it has been previously? All signs point to yes. While the FTC has spent the past few decades consistently taking action against several direct selling companies accused of operating as pyramid schemes, the overall scope of this action has been limited. However, over the past year, the Commission has expressly stated that the direct selling channel is on the short list for renewed FTC scrutiny and enforcement. Furthermore, in a move catalyzed by the Supreme Court decision on 13(b) to strip the agency of its restitutive monetary relief powers, commissioners have begun the process to create new weapons for winning both equitable and punitive monetary relief in future proceedings.  

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September 1, 2021 0 comment
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Serious Business: The FTC’s Re-Deployment of the Penalty Offense Authority
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Serious Business: The FTC’s Re-Deployment of the Penalty Offense Authority

By: Kevin Grimes
From the perspective of the FTC, the POA would appear to be a perfect weapon for quickly bringing about industry-wide change.
The Penalty Offense Authority (POA) allows the Federal Trade Commission (FTC) to seek civil penalties against a wrongdoing party where: (1) a final cease and desist order has been entered against a party in an administrative proceeding under Section 5(b) of the FTC Act; (2) the order identifies a specific practice as unfair or deceptive; and (3) a party with actual notice of the order has engaged in that practice after the order became final.

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September 1, 2021 0 comment
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Lina Khan Takes the Helm at FTC
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Lina Khan Takes the Helm at FTC

Young firebrand rides wave of anti-corporate sentiment to become top regulator

By:  David Bland The Federal Trade Commission (FTC) is under new leadership. On June 15, 32-year-old Lina Khan was confirmed by the U.S. Senate in a 69-to-28 vote following her nomination by President Joe Biden in March. The Columbia Law School professor is the youngest person to ever lead the Commission and is already making waves as she prepares an agenda to reshape the priorities of the FTC and reclaim powers that the agency relinquished four decades ago.

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August 1, 2021 0 comment
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FTC to Review Business Opportunity Rule by End of Year
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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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FTC Looks to Expand Civil Penalty Arsenal in Wake of AMG Loss
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FTC Looks to Expand Civil Penalty Arsenal in Wake of AMG Loss

ROSCA and GLBA acts provide potential paths to monetary relief

By:  Donnelly L. McDowell (with content from John E. Villafranco)
With the FTC’s fight on the Hill for new 13(b) authority ongoing, two recent enforcement actions signal that the Commission plans to use its civil penalty authority in novel ways with significant implications for the direct selling industry.
In the wake of the Supreme Court’s unanimous decision in favor of AMG Capital Management—which stated that the FTC lacks authority to obtain monetary redress under Section 13(b) of the FTC Act—then Acting Chair Rebecca Slaughter vowed to lobby Congress in response.  Her goal was to “restore and strengthen the powers of the agency” and consider new ways to obtain money from companies through enforcement. Two months after the AMG decision, the FTC continues to make good on those promises.

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July 1, 2021 0 comment
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