Rules that apply to direct selling
Direct selling is regulated. In the United States, the Federal Trade Commission and state laws look at how a company earns money, what it tells people about income and whether the structure rewards product sales or recruiting. Other countries have their own direct selling, consumer protection and securities rules, and some restrict certain plan types.
Your company must have the compensation plan, the income disclosure statement and its marketing claims reviewed by a lawyer who knows direct selling in each market. We are a software agency. We do not give legal advice, and we do not certify that a plan is lawful.
