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Tuesday / June 24. 2025
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FTC Votes to Ban Noncompete Clauses
FTC Votes to Ban Noncompete Clauses
The Federal Trade Commission voted to approve a final rule banning noncompetes nationwide. The commission expects the ban will promote more than 8,500 new startups each year, boost worker wages and innovation, and will protect “the fundamental freedom of workers to change jobs.”
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FTC to Vote on Rule to Ban Noncompete Clauses
FTC to Vote on Rule to Ban Noncompete Clauses
The Federal Trade commission will host an open meeting on April 23 to vote on a proposed final rule that would prevent the enforcement of noncompete agreements by employers.
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The New Compliance Checklist
The New Compliance Checklist
Compliance has long been considered an obligation, much like taxes and insurance, but there is power in building a company culture that reinforces and emphasizes compliance. A healthy compliance strategy shields companies from legal and regulatory offenses; reduces the prevalence of damaging and false information online; and prevents rogue sellers.
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FTC Letter to DSA Reframes Koscot Test
FTC Letter to DSA Reframes Koscot Test
The Federal Trade Commission issued a letter to the Direct Selling Association to restate its position on the interpretation of the Koscot test. The letter was sent by Lois Greisman, Associate Director, who expressed concern about a 2004 FTC letter that addressed the commission’s stance on compensation based on personal consumption.
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Walking the Tightrope
Walking the Tightrope
In the dynamic landscape of artificial intelligence (AI), direct selling companies are increasingly turning to AI-generated content to enhance efficiency and innovation. However, this transformative technology is not without its challenges. As regulatory frameworks, such as those proposed by the Federal Trade Commission (FTC) and the European Union (EU), come into play, direct sellers must also contend with ethical concerns and platform requirements aimed at ensuring transparency and accountability in the realm of AI-generated content.
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FTC Elects Not to Appeal Neora’s Landmark Win 
FTC Elects Not to Appeal Neora’s Landmark Win 
In early October of this year, Neora emerged victorious from its almost seven-year battle with the Federal Trade Commission. The judge overseeing the case ruled that the FTC’s allegations against the company are invalid. As of this week, the deadline for submitting a notice of appeal has now passed, solidifying Neora’s victory and the new legal precedent their case now presents.
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Victory for Neora
Victory for Neora
In a ruling that will surely be referred to as the new legal precedent, Neora has emerged victorious from its lengthy battle with the Federal Trade Commission. After seven years of investigation, four years of litigation and three years of negotiations, during which the FTC insisted on a nearly complete erasure of the company’s multilevel marketing structure, the court has rejected all of the FTC’s claims against Neora.
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DSA Applauds Neora’s Compliance Efforts 
DSA Applauds Neora’s Compliance Efforts 
The Direct Selling Association released a statement regarding Neora’s lengthy battle with the Federal Trade Commission. The trade association applauded Neora's strong compliance efforts and reported that it filed two amicus briefs during the case to remind the courts of the legal standard to follow.
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Neora Wins Landmark Case Against FTC
Neora Wins Landmark Case Against FTC
Neora has emerged victorious from its almost seven-year battle with the Federal Trade Commission. The judge overseeing the case ruled that the FTC’s allegations against the company are invalid.
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FTC Cracks Down on Fake Reviews and Testimonials with Proposed Rule 
FTC Cracks Down on Fake Reviews and Testimonials with Proposed Rule 
The Federal Trade Commission announced a proposed rule that would ban fake reviews, prevent the suppression of honest negative reviews and stop the posting of positive reviews that received compensation.
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Supreme Court Rules to Limit FTC Powers 
Supreme Court Rules to Limit FTC Powers 
In a unanimous ruling last week, the Supreme Court stated that the FTC has limited powers. In Axon v. FTC and SEC v. Cochran, the highest court looked at the constitutionality of both the prosecutorial and judicial functions residing within the same agency.
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FTC Commissioner Resigns, Citing Chairman’s “Disregard for the Rule of Law” 
FTC Commissioner Resigns, Citing Chairman’s “Disregard for the Rule of Law” 
Christine Wilson, the only Republican commissioner for the Federal Trade Commission, announced her impending resignation and published a scathing opinion essay in The Wall Street Journal that detailed what she described as “a disregard for the rule of law and due process” by Lina Khan, the Democratic chair of the FTC.
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