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Lessons in Missing the Point – The MLM Industry is Now Expressly Targeted by the FTC For Deceptive Income and Product Claims

    Kevin Grimes is one of the most experienced and accomplished MLM attorneys in America. Over his 25 year career as a network marketing attorney, he has represented and advised the proverbial “Who’s Who” of direct selling and multilevel marketing including Herbalife, Shaklee, Tupperware, USANA, Metabolife, MonaVie, and hundreds more.

    In October 2020, FTC Commissioner Rohit Chopra and Samuel Levine, (now) Acting Director of the Bureau of Consumer Protection, authored an article in the University of Pennsylvania Law Review entitled, The Case for Resurrecting the FTC Act’s Penalty Offense Authority (hereinafter The Case for Resurrecting). It seems that the article escaped the attention of the […]

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    Multi-Level Marketing: Life After AMG Capital and the Hope for a Better Future Part 2

      Clay Brewer is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on serving young, direct selling companies. He assists Kevin Thompson in providing exceptional legal support for companies ranging from early-stage startups to well-established entities.

      In Part 1, we presented our belief that there is soon to be a shifting tide of regulatory attitude from empowering the consumer to now empowering the government. Such empowerment has morphed into the idea that consumers are now unable to protect themselves due to the constant barrage of information, e.g., misleading/deceptive income claims, no […]

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      The Changing Regulatory Landscape: A New Generation Takes Control Part 1

        Clay Brewer is an associate attorney at Thompson Burton PLLC. His practice area focuses primarily on serving young, direct selling companies. He assists Kevin Thompson in providing exceptional legal support for companies ranging from early-stage startups to well-established entities.

        We have discussed in many of our previous articles the ever-changing regulatory strategy of federal agencies and the virtual impossibility of reading regulator’s minds, especially the Federal Trade Commission (“FTC”), but we have never truly dove into the minutiae of what may be causing this constant shifting of the goal posts. Is it really a […]

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        Unanimous Decision: FTC loses in Supreme Court decision

          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 a unanimous Supreme Court decision, the Supreme Court has held, “Section 13(b) does not authorize the Commission to seek, or a court to award, equitable monetary relief such as restitution or disgorgement.” Translated into English: The FTC has been abusing its power for decades. It’s a devastating blow to the FTC’s credibility. To recap: […]

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          Forex and MLM: Good fit or meatball sundae?

            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 “meatball sundae” analogy comes from my favorite Seth Godin book. The premise: simply because someone likes ice cream and meatballs does not mean it’s a good idea to mix the two. Is it a good idea to mix energy drinks and alcohol, steak and donuts, diamond rings and young wives? Maybe, but not always. […]