Lawsuit Anniversary: August 9, 2007

If you received the post via email, there was an error. The letter referenced below was sent in February of 2006, not 2016. I blame the error on a lack of coffee. August 9, 2007: a day that will live in network marketing infamy. Today marks the 10 year anniversary of the beginnings of a wild ride, […]

The SEC’s Enforcement of Pyramid-Based Schemes: Part 2

Over the past five years, the Securities and Exchange Commission (“SEC”) has repeatedly exerted its regulatory will on multi-level marketing companies. In Part One of this two part series, I explained the basic elements of a “security” and the trouble surrounding the presence of unregistered securities in the context of network marketing. In this article, I provide some concrete […]

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