Multi Level Marketing

Operating an MLM post-Herbalife and post-Vemma

By David VanSambeek, Esq.*

A few months back the FTC and Herbalife concluded an investigation that many projected would “reshape the MLM regulatory landscape.” The Herbalife settlement just reconfirmed many of the regulatory principals that we have been advising on for years. The biggest, or most unusual, industry-relevant component of this settlement was Herbalife’s acquiescence […]

By |December 22nd, 2016|Articles, David Van Sambeek|Comments Off on Operating an MLM post-Herbalife and post-Vemma|

A NEW LEGAL WEAPON FOR YOUR MLM COMPANY

Most Multilevel Marketing companies claim that their list of distributors is a proprietary asset of the company. When a departing distributor uses the list to solicit other distributors to follow him or her to a new company, the MLM company cries foul ball. Indeed, many MLM companies include in their Policies & Procedures provisions […]

By |May 23rd, 2016|Articles, Scott Wellman|Comments Off on A NEW LEGAL WEAPON FOR YOUR MLM COMPANY|

Licciardi v. MonaVie

An arbitrator has awarded a former MonaVie top distributor $1.2 million, ruling the Utah-based multilevel marketer of nutritional fruit juice breached a contract when it locked out Joseph Licciardi.
By |May 14th, 2015|Notable Cases|Comments Off on Licciardi v. MonaVie|
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    Judge Rules that Monavie Must Pay a Former Distributor Over $1,200,000

Judge Rules that Monavie Must Pay a Former Distributor Over $1,200,000

In a crushing defeat for MonaVie, an arbitrator in Utah has ruled that MonaVie must pay a former MonaVie distributor $1,215,000 plus cost for wrongfully terminating the distributor’s contract and for breaching its duty to act fair and in good faith.
By |May 12th, 2015|News|Comments Off on Judge Rules that Monavie Must Pay a Former Distributor Over $1,200,000|

MLM Business Litigation

Since our founding in 1982, Wellman & Warren has served as the authority in business litigation matters involving multi-level marketing issues. We specialize in four practice areas that include: cross recruiting, non competition violations, breach of contract and policy and procedure violations.
By |March 16th, 2014|Articles|Comments Off on MLM Business Litigation|

MLM Laws In China

I hear more and more from companies wanting to enter the Chinese market. Companies see the vast population and look at China as a new frontier. Unfortunately for the multi-level marketer, that frontier is mostly closed. China as a general rule is not multi-level marketing friendly.
By |February 3rd, 2014|Scott Warren|Comments Off on MLM Laws In China|

MLM Companies and Expanding to Other Foreign Jurisdictions

­It is widely understood that the United States offers a wealth of opportunity for business owners to achieve enormous success.
By |November 11th, 2013|Articles, Scott Wellman|Comments Off on MLM Companies and Expanding to Other Foreign Jurisdictions|

Undercapitalized MLM’s

I receive many calls weekly from people wanting to start up a new MLM company. They come with the typical claims of how they are different from everyone else, and that they will be the greatest and biggest MLM company of all time.
By |March 19th, 2013|Articles, News, Scott Warren|Comments Off on Undercapitalized MLM’s|

UNFAIR AND DECEPTIVE TRADE PRACTICES LAWS

Every state has a law or several laws dealing with the topics of unfair and deceptive trade practices. In addition to the states, the Federal government has also enacted statutes that prevent unfair and deceptive trade practices.
By |February 5th, 2013|Articles, Scott Warren|Comments Off on UNFAIR AND DECEPTIVE TRADE PRACTICES LAWS|
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    How to tell the difference between a legitimate multi-level marketing/network marketing company and an illegal pyramid scheme

How to tell the difference between a legitimate multi-level marketing/network marketing company and an illegal pyramid scheme

Let me begin this discussion with an evaluation of the two entities with comparisons and contrasts as approached from the standpoint of a consumer and then follow it up with a discussion of how a company can prevent itself from falling into the pyramid scheme trap.
By |February 5th, 2013|Articles, Scott Warren|Comments Off on How to tell the difference between a legitimate multi-level marketing/network marketing company and an illegal pyramid scheme|