After a Flurry of SEC Activity in the Cryptocurrency Space, the Network Marketing Industry is on Notice

    Thomas Ritter is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on cybersecurity law, which includes an assortment of data protection and privacy-related matters, and a wide-variety of business transactions. He assists diverse businesses from well-established companies to early stage start-ups.

    The Securities and Exchange Commission (SEC) released a noteworthy announcement just days before the Thanksgiving holiday with significant implications for the network marketing industry: Regulatory oversight and enforcement of cryptocurrency companies is here (and here to stay). I warned MLM companies and consumers alike of the dangers surrounding cryptocurrencies all the way back in 2015. […]

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    10 Simple Heuristics to Identify Healthy Companies

      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.

      I was recently asked to list out 10 factors that distributors could use to measure companies. After having represented countless companies and been on the front lines to observe both good and bad behaviors, I have a pretty good idea about the important factors. So here goes, in no particular order… 1) Experienced Leadership In […]

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      What is Going to Happen in 2018

        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.

        As you’re reading, keep in mind, these are best guesses and, in some cases, wishful thinking. #1: The FTC will still be at a crawl. Currently, they’re on ice. Under the old chairperson, the FTC was unafraid of doing surgery via sledgehammer. Under current leadership, the FTC is much more methodical and careful. #2: The […]

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        Federal Anti-Pyramid Bill HR 3409: Is it good enough?

          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.

          In its current form, HR 3409 is better than nothing. The current draft codifies case law where it can. The “True North” of critics has landed them in a swamp. The current draft of HR 3409 could be improved to protect more consumers. Summary of the Bill HR 3409, named the Anti-Pyramid Promotional Scheme Act […]

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          Lawsuit Anniversary: August 9, 2007

            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.

            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, […]

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

              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.

              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 […]

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