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What is a pyramid scheme?

Do you remember the invitations you have received to join a multilevel marketing company? What thoughts did you have when you evaluated if the opportunity as a pyramid scheme vs a legitimate direct selling company? Unfortunately, there is not a clear universal definition of a pyramid. Instead there are general guidelines that are accepted by…

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Back to the Breakaway?

One of the key arguments in the recent Vemma versus the FTC case was about the use of personal volume (PV) requirements for compensation qualification. The FTC contends that compensation must be paid on the sale of product and not on recruitment. But if a company requires PV for compensation, it is unclear if the…

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The Vemma Ruling is Out

Dear Friends and Colleagues, The U.S. District Court in Arizona amended its temporary restraining order against Vemma today. The order BEGS for analysis! It contains many points that will impact the direct selling channel – indeed if this order serves as the model that the FTC wants the industry to follow, direct sellers will be…

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