What Makes a Company a MLM?

    Thomas Ritter is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on business transactions, direct selling law, and cybersecurity law. He assists a variety of businesses, from well-established companies to early stage start-ups.

    I recently fielded a phone call from a business owner who asked me the following question: Does my business model qualify as a multi-level marketing company? It’s a good question whose answer invokes a variety of possible legal implications. THE MLM LEXICON With no single authority providing some sort of precedential definition of “MLM,” the best way of […]

    Required Purchases: The MLM Pay to Play Dilemma

      Thomas Ritter is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on business transactions, direct selling law, and cybersecurity law. He assists a variety of businesses, from well-established companies to early stage start-ups.

      When I sense a gap in the industry’s understanding on an issue, I see it as an opportunity to learn more and write content that sets the record straight. I’ve been fielding a lot of questions lately on the subject of whether a company can require monthly product purchases as a condition for pay plan […]

      Amended DSA Code of Ethics: Are the modifications meaningful?

        Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

        Beyond just ringing in a new year, January 1, 2016, also signified the enactment of the Direct Selling Association’s (“DSA”) latest Code of Ethics. Before breaking down the differences that exist between the new and previous versions, my commentary on the subject remains the same: the DSA has a long way to go before providing a Code […]

        Talk Fusion – Class Action Lawsuit

          Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

          Talk Fusion, a member of the DSA and a purported legitimate multilevel marketing company, was recently named in a class action lawsuit. The lawsuit can be found here and in its entirety below. The lawsuit was filed by Spreter Law Firm, based out of San Diego, California. It’s a meaty lawsuit, clocking in at 110 […]

          Thompson Burton: Support Company of the Year

            Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

            I’m extremely proud to announce that our firm, Thompson Burton PLLC, recently received an award from The Academy of Multilevel Marketing (“TAMM”). Taken from TAMM’s website: TAMM’s mission is to recognize and reward industry leaders in all categories of business who exhibit the “best of the best.” Spearheaded by friend and industry advocate Len Clements, […]

            Fifth Circuit Creates an “Insurmountable Barrier” to Pyramid Class Actions

              Thomas Ritter is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on business transactions, direct selling law, and cybersecurity law. He assists a variety of businesses, from well-established companies to early stage start-ups.

              In the Fifth Circuit of the United States Court of Appeals, bringing a class action lawsuit against an alleged pyramid schemes just got a heck of a lot harder. According to one of the three Circuit Judges presiding over the case, the court’s decision gives illegal pyramid schemes a “Teflon coating” and protects them “not […]