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Companies are recognized for environmental initiatives, while regulators address green marketing claims

By:  SSN Staff

Amid an ongoing transition toward sustainability and concerns about environmental impact to the planet, the direct selling business channel is gearing up for a transformative year ahead. A multitude of companies are ramping up their eco-friendly practices, designing more environmentally safe products, and reevaluating their supply chains to reduce their carbon footprint as well as ensure compliance with U.S. environmental marketing guides and the evolving green laws in Europe.

This proactive approach aligns with the rising consumer demand for sustainable products and with other companies that have embraced environmental stewardship. With an increasing awareness of environmental issues, consumers are actively seeking products and services that leave a smaller ecological footprint. In response to this demand, direct sellers are placing sustainability at the forefront of their business models, driving innovation and promoting eco-conscious consumer choices.

Commission addresses AI-related consumer concerns to ensure ethical use and market integrity

By:  David Bland

“AI, in particular generative AI, is still evolving rapidly, but it already has the potential to transform many industries and business practices. Notably, there is no AI exemption from the laws on the books.” – FTC

In the continuously evolving landscape of direct selling, 2023 witnessed the emergence of artificial intelligence (AI) and the tools it powered as a transformative force within the channel. As in other business sectors, direct selling companies have begun integrating this technology into their core operations, harnessing AI to enhance customer engagement, optimize supply chain management, and refine sales strategies with advanced analytics and predictive modeling.

Regulators are also keeping a close eye on these technologies. As businesses across the country embrace these new tools, the Federal Trade Commission (FTC) has made it known that it is vigilantly monitoring the marketplace and company behavior on behalf of consumers. The Commission’s Office of Technology is tasked with analyzing AI’s trends and advancements as well as its risks to ensure that these emerging tech products are used by businesses in a manner that is both ethical and compliant with existing consumer protection laws.

January Headlines

US Labor Department Proposes New Independent Contractor Rule

President Biden’s Department of Labor (DOL) is finalizing a new rule under the Fair Labor Standards Act to redefine independent contractor classification, aiming for completion in the second half of 2023. This follows extensive public feedback, including over 55,000 comments since October 2022. The proposal revisits the Economic Realities Test, introduced by the previous administration, to determine employee versus contractor status. The DOL seeks a more holistic approach, in contrast to the 2021 rule’s focus on key factors. Groups like the Direct Selling Association and the U.S. Chamber of Commerce, as well as Republican legislators, have raised concerns, citing potential confusion and impact on small businesses and independent workers.

FTC Issues Revised Compliance Guidance for Health Products