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Saturday / March 25. 2023
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Prioritize Your Income Disclosure Statement
Prioritize Your Income Disclosure Statement
One of the most important features of a non-deceptive income claim is that it is supported by unbiased data. And in recent years, the FTC has repeatedly emphasized that representations about income opportunities should reflect the earnings of a typical distributor.
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FTC Proposes New Rule to Regulate Deceptive Earnings Claims
FTC Proposes New Rule to Regulate Deceptive Earnings Claims
The FTC expressed interest in requiring companies to provide substantiated earnings claims without hyperbole or the use of hypothetical or past profits to consumers, and is considering whether lifestyle claims could be addressed in this rule as well.  
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DSA Announces Support of the FTC’s Efforts to Stop False COVID-19 Product Claims
DSA Announces Support of the FTC’s Efforts to Stop False COVID-19 Product Claims
In a statement this week, the Direct Selling Association (DSA) expressed its continued support of the efforts made by the Federal Trade Commission (FTC) to stop false product claims connected to the COVID-19 virus. 
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FTC Puts Hundreds of Businesses on Notice and Threatens “Steep Penalties”
FTC Puts Hundreds of Businesses on Notice and Threatens “Steep Penalties”
In these Notice of Penalty Offenses, the FTC highlighted the use of social media, which they believe has “blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace.”
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DSSRC Refers Q Sciences to FTC and Utah Attorney General
DSSRC Refers Q Sciences to FTC and Utah Attorney General
The Direct Selling Self-Regulatory Council (DSSRC) of the BBB National Programs has referred Q Sciences to the Federal Trade Commission (FTC) and the Utah Attorney General’s Office for possible enforcement action. This referral comes after Q Sciences failed to adequately respond to the DSSRC’s concern about certain earnings and health-related product performance claims made by the company, which distributes and markets health-related and wellness products. 
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The FTC Retains Injunctive Powers and Proves Past Behavior is Presently Punishable
The FTC Retains Injunctive Powers and Proves Past Behavior is Presently Punishable
Following the Supreme Court’s unanimous ruling that the FTC had been incorrectly wielding its power concerning Section 13(b) of the FTC Act, it appeared that the FTC’s power to inflict monetary damages without first subjecting themselves to the administrative processes found in Section 5 of the FTC Act would be limited.
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FTC Approves Changes to Reinvigorate its Rulemaking Authority
FTC Approves Changes to Reinvigorate its Rulemaking Authority
This new change will allow informal hearing procedures and eliminate the current rules that are not articulated in the FTC Act—like the publication of a staff report that contains a rulemaking and recommendations record for public comment—but maintain that these updated procedures will offer extensive opportunities for public comment.
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Truth In Advertising Organization Lobbies FTC to Target Direct Selling Industry with Penalty-Offense Program
Truth In Advertising Organization Lobbies FTC to Target Direct Selling Industry with Penalty-Offense Program
The advertising watchdog group TruthInAdvertising.org (TINA) sent a letter yesterday to the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), requesting that the FTC “implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.” The letter […]
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DSA Emphasizes Importance of Strong Anti-Pyramid Laws & Enforcement Following FTC Action Against Blessing Loom
DSA Emphasizes Importance of Strong Anti-Pyramid Laws & Enforcement Following FTC Action Against Blessing Loom
The Direct Selling Association (DSA) released an official statement following an announcement by the Federal Trade Commission (FTC) and the state of Arkansas that accuses Blessing Loom of being a pyramid scheme. In its statement, the DSA said the situation “highlights the value of and need for strong anti-pyramid laws and enforcement.”
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FTC to Review Business Opportunity Rule as New Way to Invoke Civil Penalties Against MLM Companies
FTC to Review Business Opportunity Rule as New Way to Invoke Civil Penalties Against MLM Companies
The Federal Trade Commission (FTC) announced in a Statement of Commissioner Rohit Chopra that it will begin looking for other methods to seek restitution or disgorgement from companies in the wake of the U.S. Supreme Court ruling that the Commission could not do so using Section 13(b) of the FTC Act.
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The FTC’s Aggressive Expansion of the ROSCA Act
The FTC’s Aggressive Expansion of the ROSCA Act
Companies utilizing the negative option feature should take note: the FTC has found a new avenue for obtaining monetary relief.
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A Discussion of the FTC Announcement
A Discussion of the FTC Announcement
As President of DSA, it is my job to evaluate and report on cases like the recent Federal Trade Commission announcement regarding AdvoCare dispassionately and to analyze the impact on the direct selling channel and assist our members in charting a course forward. Nonetheless, it is difficult for me to believe the investigators got all […]
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