MLM Group Not Buying FTC Executive’s Concerns About Its Income Disclosure Guidance

FTC Division of Marketing Practices assistant director concerned direct selling self-regulation group’s guidance “will encourage deceptive conduct and facilitate deceptive earnings claims.” DSA president says the concerns might reflect the thinking of agency’s staff more than the intent of the agency’s regulations.

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The Federal Trade Commission suggests an industry-self regulation group’s guidance for direct sellers’ income claims doesn’t track with the agency’s regulations, an argument the group says it will address when the FTC publishes a rule for earnings claims.

The disagreement between the associate director of the FTC Division of Marketing Practices and executives at the Direct Selling Self-Regulatory Council and the Direct Selling Association, which has numerous consumer health and beauty product multi-level marketers among its members, could mark a rare occasion of the federal agency with oversight of advertising and trade

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