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MLM Legal

MLM companies and independent contractors (distributors) must understand the local, national and international laws that regulate the MLM and direct selling industry. In the United States, the direct selling industry is regulated by Federal Trade Commission rulings that influence commission plans or income claims. The sale of products is also regulated for all industries such as the three day return rate. In international legal cases, national and local laws vary.

  • July 6, 2015

    Product Substantiation: Direct Selling’s Key to Success

    The key issues in nutritional supplements are (1) that products have substantiation for their claims, (2) that consumers have information about the nutritional supplements, and (3) that products contain the ingredients listed. Substantiation Substantiation matters. That is, scientific proof for the effi... Read more ›

  • June 9, 2015

    You’ll Pay Millions in Fines if You Violate These Rules by Jennifer Fong and Spencer Reece

    If you are in a direct sales or network marketing company, your policies and procedures forbid product claims. Don't believe me? Go read 'em. Trust me, it's in there. OK everyone, this is really important, so put down whatever you’re doing and listen up.  I’m giving you my *serious eyes.*  I mean it,... Read more ›

  • April 10, 2015

    Corporate Feature: Self-Assessment of Consumer Use Tax

    Introduction For most companies, the imposition of sales tax is a normal part of business operations. However, consumer use tax is often overlooked, leading to costly transactional audit penalties and interest, or unnecessary overpayments. Consumer use tax associated with untaxed purchases often represents... Read more ›

  • April 9, 2015

    Three Biggest Myths Network Marketers Believe About Taxes

    If I Take the Home Office Deduction, Will it Increase My Risk of Getting Audited? It's surprising how many network marketers actually overpay their taxes. There are common misconceptions Network Marketers have in preparing their tax returns that can cost them hundreds--even thousands-of dollars in extra ta... Read more ›

  • October 17, 2014

    Get Your Hands Off My Downline!!!

    If God had been running an MLM rather than delivering the Jews from Egypt, the first of the Ten Commandments given to Moses would have been "thou shalt not steal thy neighbors downline." Following closely on the heels of this commandment would be "thou shalt not covet thy neighbor's downline," and "thou shalt... Read more ›

  • October 15, 2014

    Get Rich Quick!

    You can be successful with a heavy dose of blood, sweat, and tears. If that were my title, would you have read this far? Doubtful. So here’s the cold hard truth: there is no such thing as getting rich quick. If it were that easy, we’d all be rich! When I was a young newlywed, living off love and not mu... Read more ›