Neora
Major changes in compensation plans, digital approach in the new normal
By: Teresa Craighead
We’ve heard over and over all the ways in which 2020 was denounced as terrible, catastrophic, and unbearable. But from the perspective of many companies in the channel, those words don’t really apply. Strange, unpredictable, and unprecedented may be more apt, and for many companies, bountiful, outrageous, and exciting are better descriptors.
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Regulators warn enforcement is a ‘top priority’ at a recent industry conference
By: David Rauf
“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 Commission
A 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.
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Neora has added Maureen Ohlhausen, former acting chairman of the Federal Trade Commission (FTC), to its legal team in the company’s case against the FTC. Ohlhausen is currently a partner at Baker and Botts LLP and will bring an expertise in consumer protection and competition to Neora’s upcoming battle. Prior to Baker and Botts LLP, Ohlhausen served as acting FTC chairman from 2017 to 2018 and as a commissioner starting in 2012. She has testified numerous times before Congress and been recognized with several awards, including the FTC’s Robert Pitofsky Lifetime Achievement Award. Neora’s legal team will focus on the FTC recent “attempt to enact a new retroactive interpretation of how direct selling companies can operate,” according to Deborah Heisz, co-CEO of Neora.
U.S. Department of Labor attempts to tackle issue once and for all
By: David Rauf
“Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make to pursue the freedom and entrepreneurialism associated with being an independent contractor.”
—Eugene Scalia, Labor Secretary, U.S. Dept. of Labor
“The goal would be to properly classify the field as independent contractors not subject to any test.”
—Will Miller, attorney, Buchlater
Under a new proposed Trump administration regulation, direct selling companies could finally gain some clarity on which workers may be classified as independent contractors.
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Dismissal of case in Illinois allows company to fight in preferred venue
By: David Rauf
“Neora and Jeff Olson look forward to challenging the FTC’s overreach. As we said from the very beginning, we intend to defend ourselves and stand up for our industry with vigor.”
—Neora company statement
A federal judge has dismissed a lawsuit by Neora, in which the company asked for a ruling against the Federal Trade Commission (FTC) for trying to enact a pyramid scheme law that doesn’t exist. Neora claimed the act was outside the FTC’s statutory authority.
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The Neora lawsuit against the FTC has been dismissed and effectively transferred from New Jersey to Dallas, Texas, where Neora is headquartered. New Jersey was the preferred venue choice of the FTC when the matter’s dueling cases were filed. Neora requested the dismissal in order to file counterclaims in Dallas and combine into a single case.
See the opinion and order PDF below.
Recent court decisions concerning Section 13(b) of FTC Act could change decades of precedent
By: David Rauf
The FTC has taken the position that the injunctive relief permitted by 13(b) allows it to disgorge revenue from scammers and corporations as well as regain restitution for victims.
“There’s an existing process outside of 13(b) for the FTC to pursue monetary relief, but it is cumbersome and requires more due process, which is why the FTC doesn’t like it.” —Larry Steinberg, Chair, Multilevel Marketing Industry Group, Buchalter
This could dramatically affect the relationship between the direct selling industry and the FTC. —Larry Steinberg, Chair, Multilevel Marketing Industry Group, Buchalter
The U.S. Supreme Court has agreed to decide whether the Federal Trade Commission (FTC) can continue to seek monetary rewards when it sues scammers and firms accused of deceptive business practices, setting the stage for a ruling that will have wide-ranging ramifications for the direct selling channel.
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Litigation can be influenced by venue choice and have a significant impact on a case outcome

U.S. District Court Judge Freda L. Wolfson
By: David Rauf
Different venues can bring about an array of juror demographics, docket speeds or judicial precedents that can benefit one side.
The Federal Trade Commission’s (FTC) lawsuit alleging that Neora is an illegal pyramid scheme will be transferred to a Texas courthouse, a federal judge has decided. The ruling also accuses the direct selling firm of venue shopping to try and get the case moved to a friendlier jurisdiction.
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Prasad Gankanda, Young Living
Prasad Gankanda has joined the management team of Young Living as executive vice president of sales. He previously served as senior vice president of global sales operations. Gankanda joined Young Living in 2015 as director of international operations, after holding positions of increasing responsibility at MonaVie, focused on manufacturing and supply chain.