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People on the Move – April
People on the Move

People on the Move – April

PEOPLE ON THE MOVE

PEOPLE ON THE MOVE – April

April 1, 2021

 

Joe Miranda, Herbalife

Joe 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. 

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April 1, 2021 0 comment
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ComplianceLegalRisk Roundup

FTC Maintains Pressure on Compensation Plans

Direct sales companies should prepare for a new wave of regulatory actions

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.

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March 1, 2021 0 comment
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Getting Real in 2020
Getting Real Interviews

Getting Real in 2020

Insight from direct selling thought leaders on leadership, growth and important trends

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.

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January 1, 2021 0 comment
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Direct Selling CEOs Reveal 2021 Growth Plans
FeaturesNews

Direct Selling CEOs Reveal 2021 Growth Plans

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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January 1, 2021 0 comment
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FTC Continues Aggressive Stance on Deceptive Claims
FeaturesNews

FTC Continues Aggressive Stance on Deceptive Claims

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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December 1, 2020 0 comment
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Former FTC Chairman Maureen Ohlhausen Joins Neora’s Legal Team
Headline NewsNews

Former FTC Chairman Maureen Ohlhausen Joins Neora’s Legal Team

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.

November 1, 2020 0 comment
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Independent Contractor Classification May Finally Find Clarity
FeaturesNews

Independent Contractor Classification May Finally Find Clarity

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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November 1, 2020 0 comment
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Neora to Resume Case Against FTC in Texas
FeaturesNews

Neora to Resume Case Against FTC in Texas

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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October 1, 2020 0 comment
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Headline News

Neora v FTC Case Will Be Transferred to Dallas into Single Case

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.

FTC Neora Order[3]

 

September 1, 2020 0 comment
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Supreme Court to Weigh In on FTC Authority to Order Monetary Relief
Cover StoryDirect SellingFeatures

Supreme Court to Weigh In on FTC Authority to Order Monetary Relief

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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September 1, 2020 0 comment
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