“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 CommissionA 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.
“It almost seems like what the FTC is saying is you can’t represent that you have a business opportunity.” —Michael Collins, President and CEO, M&L Collins Group
“The FTC is going to be very diligent. We’re not going to tolerate these claims.” —Lois Greisman, Assoc. Director of Marketing Practices, Federal Trade CommissionThe Federal Trade Commission (FTC) has issued warning letters to six more direct selling companies over alleged misleading product and earnings claims related to the coronavirus. This represents the latest escalation between regulators and the direct selling channel over how to market products and business opportunities during the ongoing pandemic.
Ensuring that compliance permeates all aspects of a business’s operation will certainly serve the long-term interests of a company by keeping it off the radar of regulators.Editor’s Note: The attorneys at Winston & Strawn have provided answers to the most common questions they’ve been asked about direct selling business practices by their clients during the COVID-19 pandemic. In the article below they share their insights and opinions.