“We want to have open communication at a time when everyone is in lockdown.” —Gary Gallant, chief information officer, IsagenixIt’s late in the afternoon one Friday in April, and Isagenix Chief Information Officer Gary Gallant is about to wrap up the work week. But Gallant is going to check one more item off his to-do list—a team meeting.
“We continue to advocate on behalf of direct sellers to make sure we’re top of mind with members of Congress as they consider packages to get the economy rolling.” —Joseph Mariano, President, DSAAs Congress continues to debate how to minimize damage to the economy wrought by the coronavirus pandemic, the Direct Selling Association (DSA) is urging federal lawmakers to put in place extra protections for direct sellers and independent contractors as part of future stimulus packages.
Last year, the U.S. imposed new duties on steel and aluminum imports from Canada and Mexico, prompting the Mexican government to react with its own set of retaliatory tariffs that ended up having an impact on some U.S. direct sellers that sell health supplements.
“If China wants to restrict anything coming from the U.S. or tax any company it sees fit from the U.S., it could do that very easily. In that scenario, what’s going to happen is that the cost is going to be absorbed by the company or passed on to the consumer.”
—Rafael Miner, partner, Miner Group Consulting
The sudden announcement has created speculation throughout the channel, with [experts] asking why a company with $472 million in revenue would choose to so dramatically change its business model, seemingly overnight.
“The FTC has basically told us what the right way to do business is. [FTC Associate Director] Lois Greisman has repeatedly said ‘look to the settlement’, ‘look to the MLM business guidance.’ This seems to be a pretty clear indicator they weren’t kidding around.” —Al Bala, CEO Mannatech
“Segmentation is a critical part of understanding the FTC’s view of what is legal and what is not.” —Larry Steinberg, partner, Buchalter
“From an industry perspective, people in the regulatory community clearly had a hard time seeing how the model worked. Segmentation will help to better demonstrate who is using the product and who is buying the product.” —Joseph Mariano, president, DSA