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 […]
Below is an excerpt from my article about the Ninth Circuit opinion on BurnLounge. The article can be read in full over at Seeking Alpha. It’s an important subject. Click here to read it. Summary The Court successfully threaded the needle on the issue of “ultimate users,” essentially creating two classes of participants. The Court provided […]
As a refresher, in early February of 2013, the FTC got an injunction issued against Fortune Hi Tech Marketing. The summary of the lawsuit can be found here: FTC vs. Fortune Hi Tech. FTC’s Strategy Since the lawsuit was filed, I’ve had a lot of time to study the FTC’s arguments against FHTM. In particular, […]
Retired Wisconsin litigator, Bruce Craig, wrote an article featured on Seeking Alpha titled, “An Investor’s Guide to Identifying Pyramid Schemes.” While the title certainly implies a hint of objectivity, it’s simply false advertising . In a nutshell, the author holds on to his long-standing, 30+ year view that all MLMs are pyramids. Unfortunately, Craig willfully […]
When both Troy Dooly and Jim Gillhouse call me to be a guest on their program, I jump every single time. They ask great questions and lead fantastic conversations on their program. During this episode, we talk about the troubling language in the final BurnLounge order. Feel free to listen and share your thoughts below. Already after this […]
Burnlounge was a purported network marketing company. They positioned themselves as a blend between iTunes, MySpace and Amway. The FTC filed its initial complaint against Burnlounge in June of 2007. After a bench trial (and a two year wait), the judge held Burnlounge to be an illegal pyramid scheme.