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 the company paid commissions to their distributors as well as various income claims made by the company and their distributors.
After 5 months of discussions, document requests, and a face-to-face meeting in Washington D.C., the FTC made the decision to halt the investigation without litigation, fines, or penalties of any kind. Wellman & Warren’s extensive knowledge of MLM practices, case law, and regulations was instrumental in bring about a quick and satisfactory result for the client.
As we often preach to our MLM clients, the best way to succeed in any type of regulatory investigation is to take proactive steps to address the typical MLM concerns before an inquiry even starts. Feel free to contact our attorneys now for a comprehensive review of your MLM company’s operations.