Direct sales and MLM companies face an evolving landscape of legal and regulatory challenges that impact how they operate, recruit and promote their businesses. Notably, the Federal Trade Commission (FTC) continues to modify its playbook in the aftermath of AMG Capital Mgmt., where the Supreme Court limited the commission’s enforcement resources. Below are three external threats companies may face in 2026.

The Federal Trade Commission (FTC) has formally abandoned its nationwide non-compete ban. In a 3-1 vote, the FTC dismissed the non-compete rule which had been previously stalled in August 2024 by a Texas federal court and had yet to officially take effect.

Direct Selling Association CEO Dave Grimaldi urged Federal Trade Commission leadership members to make rules based on data, not assumptions. Grimaldi was participating in a panel discussion hosted by the American Enterprise Institute entitled The FTC at the Crossroads: The Path Forward for Competition and Consumer Protection where senior FTC leadership was in attendance.

A US federal appeals court has overturned the Federal Trade Commission’s “click to cancel” rule. The rule would have made it easier for consumers to cancel subscriptions by requiring companies to provide a straightforward way to cancel subscriptions and recurring charges and would have made it illegal to prevent cancellation through retention offers or long call center wait times.

The Federal Trade Commission (FTC) has reached a settlement with Match Group, the owner of online dating platforms Tinder, Hinge, OKCupid, Match.com, Plenty of Fish and more.

The Negative Option Rule was scheduled to go into effect on May 14. The FTC has now deferred enforcement of the Rule through July 2025.

The Federal Trade Commission (FTC) filed a complaint for permanent injunction, monetary judgement and other relief against IYOVIA, also known as International Markets Live, Inc. (IML) and IM Mastery Academy Ltd.

The Direct Selling Association (DSA) said it “applauds” the efforts of US Senator John Curtis for raising concerns about the Federal Trade Commission’s (FTC) recently proposed rules that target the direct selling industry and the small business owners involved in the channel.

What will Republican control mean for the channel? Direct Selling News reached out to thought leaders, industry attorneys, consultants and experts to get their perspective on what may—or may not—happen next during a second Trump administration.

The Federal Trade Commission is making it easier for consumers to cancel subscriptions. In a final “click-to-cancel” rule, the Commission announced it will prohibit sellers from misrepresenting facts while using negative option marketing and will require sellers to provide important information before obtaining billing details or charging customers.

The Federal Trade Commission’s (FTC) efforts to ban noncompete agreements continues. This past weekend, on October 18, 2024, the FTC filed a notice of appeal challenging the August 2024 ruling by a US District Court judge in Texas, which effectively blocked the final rule that would implement the Commission’s noncompete ban.

How the dismantling of the Chevron deference doctrine could impact the direct selling channel and its interactions with the Federal Trade Commission In 1984, the US Supreme Court established a precedent: when faced with ambiguity, courts should defer to the government agency with the most expertise. The original lawsuit Chevron USA, Inc. v. Natural Resources Defense Council, known simply as the Chevron […]