What The FTC Said About Direct Selling In 2018

By John Villafranco and Donnelly McDowell (December 5, 2018, 5:05 PM EST) -- Earlier this year, the Federal Trade Commission released new business guidance for direct sellers and multilevel marketers describing the legal principles that it will apply when evaluating practices under the FTC Act.[1] In many ways, the commission's Business Guidance Concerning Multi-Level Marketing isn't new — at least for those who have been paying attention to FTC enforcement and comments to industry.

The guidance was, however, notable in that it reaffirmed the commission's commitment to bringing enforcement actions during a presidency that has championed the cause of deregulation. And the FTC's actions have echoed this commitment. Since the guidance was released in...

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