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Tag Archives: FTC


A Page in the History of Direct Sales: FTC vs Amway (1975-1979)

September 10, 2018

In 1975, the U.S. Federal Trade Commission (FTC) accused Amway of operating as a pyramid scheme. Many people might think this case had lasted a few months at most but actually it took four years until 1979. As an introductory note, the Federal Trade Commission has the regulatory authority over direct selling businesses in the […]

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The New FTC Direct Selling Guidance… Imperfect, But a Good Start

January 22, 2018

Guest author Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the U.S. Direct Selling Association. He has served as legal advisor to various major direct selling […]

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What Pyramid Schemes Are and How to Spot Them

December 25, 2017

Not all pyramid schemes are created the same. For the sake of not being labelled as a pyramid, they are all formed and promoted trying not to look like one. Why? Because pyramid schemes are strictly illegal in many jurisdictions, and even at those places they are not, they are still considered as illegitimate practices […]

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FTC and Direct Selling Come to the Table as Stakeholders: H.R. 3409

December 4, 2017

Guest author Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the U.S. Direct Selling Association. He has served as legal advisor to various major direct selling […]

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In 100 Words: Looking Ahead to 2017

December 19, 2016

As we come to the end of another year, I wanted to ask some of the prominent persons of the direct selling community what they see coming in 2017. “What will be the most important issue, whether it be an opportunity or a threat, in the direct selling industry that will need a closer focus […]

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Fact-Checking the FTC’s New Legal Guidance

December 12, 2016

Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as legal advisor to various major direct selling […]

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The FTC’s Perspective and the Key Takeaways

November 14, 2016

The participants at the U.S. Direct Selling Association’s Business & Policy Conference a few weeks ago listened to an important speech. The speech was given by the Federal Trade Commission’s Chairwoman Edith Ramirez. It was dedicated to the FTC vs Herbalife Settlement and more importantly, how the Commission would take it from there. Highlights From […]

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FTC v. Herbalife Settlement: First Take

July 25, 2016

This week’s author Jeffrey A. Babener is the principal attorney in the law firm of Babener & Associates. For more than 25 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as legal advisor to various NYSE direct selling […]

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The PR Imperative Post-Vemma

November 9, 2015

This week’s guest post is from Bobbie Wasserman. Bobbie is the Managing Director of Wave2 Alliances Inc., a public relations and corporate reputation firm that builds and restructures corporate communications departments to better serve today’s communication platforms. She has helped to shape the communications landscape of global brands and leading companies like Amgen, Arbonne, Bank of Montreal, […]

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In 100 Words: What Should the Others Do?

September 28, 2015

The court ruling on Vemma upon Federal Trade Commission’s (FTC) accusations undoubtedly has attracted much attention within and out of the direct selling industry. So, when a member of this industry receives such a ruling, what should the others do, how should they position themselves? “When authorities file a lawsuit declaring a direct selling company […]

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Vemma: Preparing for the FTC Ambush

September 21, 2015

This week’s author Jeffrey A. Babener is the principal attorney in the law firm of Babener & Associates. For more than 25 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has served as legal advisor to various NYSE direct selling […]

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Herbalife's 2014

March 2, 2015

With the year-end reports in hand, two weeks ago I published my review on giants’ (i.e. Avon, Natura, Nu Skin, Oriflame, Tupperware plus Amway) 2014 performances. As Herbalife had announced it would report later on, I chose not to wait for it. And now we have Herbalife’s figures, so let’s take a glance how it […]

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