Blake Schroeder, Medical Marijuana Medical Marijuana Inc., parent company of Kannaway, has appointed Blake Schroeder as CEO and president. Schroeder will replace Dr. Stuart Titus, who is semi-retiring. Schroeder joined the company in 2016 and was formerly CEO of Kannaway. He also has worked for Forevergreen and MonaVie.
Joe Miranda, HerbalifeJoe Miranda has joined Herbalife Nutrition in the newly created role of chief digital officer. Miranda has more than 20 years of experience as a global technology executive in the media, financial, and data analytics industries, developing and executing enterprise digital strategy. He previously served as chief digital officer at Thomson Reuters.
By: Brent Kugler, Guest Contributor
Companies should take the time to consider if their plans hit the guardrails laid out by the most recent statements and actions of regulators.
Like it or not, the legal requirements for multi-level-marketing (MLM) compensation structures have changed in recent years. Many existing comp plans used by direct selling companies for years may now, if challenged, be considered non-compliant by the Federal Trade Commission (FTC). Indeed, comp plans considered to be compliant as recently as two years ago may today run afoul of the FTC’s latest criteria for evaluating compensation structures.
JANUARY ISSUE
SARAH SHADONIX, Founder and CEO of Scout & Cellar
Making Tough Business Decisions
For us, it doesn’t matter if it makes business sense on this minute, this day. We do the right thing for the standard of “for the good of the company and for the good of the people.” It might not be easy, but the right thing is always the right thing.
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.
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.
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.
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.