Since at least 1979, regulators and critics alike have questioned direct retail sales to the ultimate user inside a direct selling aka MLM company. This last month we saw once again this concern raise it’s ugly head when the FTC went after Vemma as a pyramid, stating they didn’t have enough “ultimate users” to be justified a legit network marketing company.
After reading through thousands of pages of documents and transcripts, it seems to be the DSA and regulators are partially to blame for this current issue. NEITHER of them are willing to define what the ultimate customer is, or exactly how many you need who don’t state they might want to earn some extra income also. Maybe it’s time a real Bill is crafted and send to Congress to eliminate this issue. In the mean time, here is a solution that should be supported by ALL direct selling companies as well as the independent sales professionals marketing their products.