March 26, 2023
By: Larry Steinberg and Artin Betpera
“Every direct selling company is keenly aware that it must comply with a myriad of federal, state, and local laws that apply when selling goods and services to consumers. The overlay of these regulations on a multilevel business model where sales are often conducted by a large network of independent distributors presents unique challenges. This danger is exacerbated by the position routinely taken by regulators and prosecutors (including the Federal Trade Commission) that direct sellers are strictly liable for any transgressions committed by their distributors.”
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