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The Court of Appeals held that yes, the evidence admitted in Bestline’s trial was properly admitted. Bestline was found liable for deceptive trade practices in recruiting potential distributors..
Direct selling is big business – $189-billion-a-year big business – with more than 117 million independent distributors worldwide*, representing everything from clothing and jewelry to wellness, nutrition products, and home dcor. And with the distributor compensation complexity factored in can cause some complicated tax compliance rules.
AdvoCare Abandons MLM: Uncertainty Returns to Direct Selling. May 27, 2019 . Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates.
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As per the FTC, retail sales in MLM are defined as sales to non-affiliates. And if your company has little to no significant retail activity taking place, it’s a pyramid scheme. Oh and if you’re in an MLM company purposeful avoiding the US, the FTC’s clarification on this matter should make it abundantly clear why.
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