DSEF and Earnings Claims

    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.

    The Direct Selling Education Foundation, created by the DSA, was established to help spread positive information about the many benefits of the direct selling industry. They prepared a very clever video below that illustrates the struggle a distributor goes through when presenting the financial opportunity to prospects. Should you call your time share a “summer home?” Should you refer to your 18 foot fishing boat a “yacht?” Should you talk about the opportunity to earn millions upon millions of dollars? In basic terms, it’s mandated by the Federal Trade Commission for marketers to provide income disclosures whenever above average income is presented. It’s perfectly normal for distributors to discuss the income opportunity, especially when the prospect is presented with enough data to make an informed decision. However, it’s highly unethical and arguably illegal when a distributor grossly exaggerates their personal results in the enterprise.

    Do you have any suggestions to help curb aggressive income claims?

      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.