Thompson Burton PLLC partner, Kevin Thompson, was recently quoted by Bloomberg News in an article titled “BurnLounge Shutdown by FTC Upheld by Federal Appeals Court.” The article states that the decision was closely watched in the direct sales industry in connection with the Federal Trade Commission’s (FTC) investigation of Herbalife Ltd. (HLF). Kevin is quoted as stating “the court stopped short of ruling that commissions generated from goods sold by the sales force, rather than customers outside the company’s network of distributors, were illegal.” The article also states that “This decision is good for Herbalife and good for the network-marketing industry because it clarifies the issue of paying commissions” to distributors buying products. “As long as the products have legitimate value, the company will be in a good position to thwart off pyramid arguments,” according to Thompson.
The article can be viewed here.[social_warfare]