Is Use of Facebook a Violation of My Non-Solicitation Clause?
It’s often the case that a distributor departs to a new multi-level marketing (“MLM”) company because he or she sees a greater opportunity. It’s also often that distributors use social media as a marketing tool to promote their business – whether it be with the former company or the new company.A question that I’m routinely [...]
Use of Provisions to Limit a MLM Distributor’s Claim for Damages
When a distributor is terminated by his or her MLM company, he or she may claim breach of contract and seek recovery of his or her past and future commissions. After all, the distributor may have worked for months or years to build up his or her downline only to have its income stream summarily [...]
A New Legal Weapon For Your MLM Company
Most Multi-level 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 acknowledging [...]
Wellman & Warren defends FTC investigation of MLM Company
Wellman & Warren, LLP has, once again, successfully defended a Federal Trade Commission (FTC) investigation of a Multi-Level Marketing company. Due to the private and confidential nature of the investigation, Wellman & Warren is not able to disclose the names of parties involved in the investigation. The FTC's investigation centered around the methods in which [...]
Litigator Anabella Bonfa of Wellman & Warren wins the 2016 Women’s Advocate of the Year Award
Attorney Anabella Bonfa was chosen out of 14 Orange County finalists to win the prestigious Connected Women of Influence Award for “2016 Women’s Advocate of the Year” for her work mentoring both law students and young lawyers. The award is given to one individual who has a long track record of acting as a mentor [...]
Legitimate MLM Company or an Illegal Pyramid Scheme
By: Scott Warren, David Van Sambeek, Scott Wellman* There has been a recent surge of enforcement actions by governmental agencies claiming that that certain network marketing companies are illegal pyramid schemes. The most notorious of these recent actions is the action filed by the U.S. Federal Trade Commission (FTC) against Vemma. But this is just [...]
Staples Center and Parents of Lucas Tang Settle Suit Over Boy’s Fatal Fall During Lakers Game
Since a lawsuit was first filed against the Staples Center by a Garden Grove couple whose 34-month-old son fell 25 feet to his death from a luxury suite during a Lakers game--and up through the first days of the trial that started last week--arena representatives were adamant that parental neglect was to blame for the [...]
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.