According to Bloomberg Businessweek, the FTC recently issued a rule that prospective distributors have to submit a one-page disclosure form that includes support for earnings claims, a list of previous legal actions against the firm, and the firm’s cancellation or refund policy. After an intense lobbying effort, which included former FTC lawyers, the FTC exempted the $28 billion multilevel marketing industry from the new rule.
Please see the articles for more information about FTC’s inability to impose strict ruling to protect prospects and MLM distributors.
- Amway Joins Sellers Lobbying Against Distributor-Protection Rule: Bloomberg
- A Charm Offensive by Direct Sellers: Bloomberg Businessweek