Non-Competes in Network Marketing: The controversy continues

The issue of non-competes came up after Team Beachbody announced it was adding a non-compete to its policies and procedures. As reported over at Business for Home, Beachbody published the following statement: As we strive to make the Beachbody Coach opportunity the best it can be and to protect all of your hard work helping […]

Understanding Unregistered Securities: The Linchpin in the SEC’s Cases Against Network Marketing Companies

While entrepreneurs and marketers alike are often aware of the FTC’s involvement in the direct sales space, clients largely remain unaware of the Security and Exchange Commission’s (“SEC”) involvement in network marketing. The SEC oversees the enforcement of federal securities laws. This means the SEC is designed to ensure companies do not offer or sell securities in the absence […]

Vemma Settlement: Industry progress at the tip of a spear

More than two months after news broke of a potential settlement, Friday marked the release of the FTC’s Final Order against Vemma and founder BK Boreyko. Despite some exacting standards, Vemma’s ability to conduct business remains intact. What the settlement means for Vemma’s long-term viability remains a mystery, but the FTC’s actions against Herbalife and Vemma indicate a shift to a new regulatory […]

FTC and Vemma Announce Settlement

Vemma and the FTC announce settlement terms today. I discuss the details below. The terms with Vemma and Bk Boreyko are fairly simple to understand. The broader implications for the industry are more difficult to decipher. The full Order is below. Vemma Final Order (FTC Settlement) by Thompson Burton on Scribd

FTC’s Directive to DSA: Times are changing

Edith Ramirez, chairwoman of the Federal Trade Commission, gave a powerful speech at the DSA’s Business and Policy Conference in Washington on October 25th.  While some in attendance were expecting a non-substantive speech, the kind one would expect from a high-ranking government official, Ramirez was anything but boring.  She gracefully navigated some very controversial terrain […]

Stream Decision Overturned: Class action pyramid lawsuit allowed to proceed

Around this time last year, we wrote an article about a Fifth Circuit decision that would have made pyramid class action litigation nearly an impossibility. After deciding to rehear the case, the Fifth Circuit recognized the logical fallacy of its prior decision and came to a different (and in my opinion) correct conclusion. The full court decision is here.  We’re not […]