By: David Bland
In the wake of the Omicron variant’s global surge, as COVID-19 case counts neared their peak of over 800,000 new cases per day across the U.S., the Federal Trade Commission (FTC) publicized a series of cease and desist demands it sent to 25 businesses over the past six months. Granted under the authority of the COVID-19 Consumer Protection Act, the list included four direct sellers targeted in November and December 2021.
By: David Bland
For the cases that get to the level of a DSSRC referral, usually there’s an issue of systemic patterns of behavior that are going on—particularly with the claims; it is rarely a one-off post, and, with respect to earnings claims, in particular, it’s often the tip of the iceberg that leads the FTC to a much deeper rabbit hole.
— Peter Marinello, Vice President at BBB National Programs and Director of DSSRC
In 2019, the direct selling channel officially became a self-regulated business sector. Two years on, and the channel is reaping the benefits. Founded by the Direct Selling Association (DSA) and administered by BBB National Programs, the Direct Selling Self-Regulatory Council (DSSRC) is an independent, non-profit organization that is continuing its mission of oversight through monitoring, investigation, and enforcement of the regulations and ethics standards that have been set in place for direct sellers by the Federal Trade Commission (FTC) and the DSA.
By: Jonathan Gilliam, CEO, Momentum Factor
Opponents of the channel appear to have taken a war footing, and what we collectively do now as an industry will determine the future of this great business model we love.
By: David Bland
There were a number of factors that led us to think that the timing was right for this type of conference, including indications from the Federal Trade Commission that they are tightening focus on the MLM industry.
—Douglas M. Brooks, Attorney
Anti-MLM influencers appear to be more interested in fostering a cottage industry of their own than they are to an inclusionary dialogue on how best to promote entrepreneurship.
—Direct Selling Association
For decades, direct selling’s opponents have worked to challenge the channel from the relatively confined spaces within their respective legal, academic and media circles.
The occasional high-profile court case would generate publicity for a few news cycles, and newspaper and magazine articles would follow with passing coverage.
By: Jenna Lang Warford
Given social distancing and the low win rate of pre-recorded and printed material, livestreaming is a strong avenue to pursue. It’s been used quite successfully in Asia Pacific already.
—Damian Mobley, Ex. Dr. of Technology, MONAT Global
Sending an email for a flash sale is almost like ‘junk mail’ now. People aren’t as interested in what they receive in their inbox.
—Jason Sicala, Director of Events, The Avon Company
Livestream shopping has arrived in the direct selling channel. With this interactive platform technology, direct sellers are expanding their customer base, increasing sales and generating excitement for their field.
By: David Bland
Editor’s note: In this month’s Special Report, we bring a difficult topic to the attention of executives in the channel. While the “anti-MLM movement” is gaining ground, it is uncoordinated and without leadership. By analyzing the growing anti-influencer communities on social media, we hope to enlighten readers as to the different types of direct selling content and which platforms are most susceptible to targeting, so companies can take action with more informed and effective counter-strategies.
By: David Bland
The loss of TikTok as a potential tool for reaching the dynamic Gen Z market is a blow to the channel.
Most concerning is the prospect that TikTok’s decision will act as a bellwether for platforms more vital to the direct selling channel, such as Facebook and YouTube.
The social media platform TikTok took the direct selling channel by surprise in December 2020 when it announced a sweeping addition to its community guidelines that included a ban on multi-level-marketing content. It is the first online social platform to place an outright prohibition on direct selling and MLM activity.
