A proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM) was dismissed in Kentucky by a federal judge.
Lexington, KY (PRWEB) February 24, 2012
On Wednesday, the United States District Court Eastern District of Kentucky dismissed a proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM). The judge ruled in favor of FHTM and all named individual defendants on their motion to compel arbitration. The judge upheld the arbitration clause contained in FHTM’s Independent Representative Agreement, determining that the Plaintiffs had contracted with FHTM, that the contract contained an enforceable arbitration clause for all of the plaintiffs’ claims, and therefore that the case should be dismissed.
FHTM is a direct selling company with a business model that has existed for over 100 years in the United States. The company has been in business for over 10 years and has operated with the highest ethical standards and business practices.
“We feel this is a just and correct decision by the federal court and we are glad that our Independent Representatives can once again conduct business without the challenge of this inappropriate lawsuit. ” said Keith Kuder, Chief Legal Officer for FHTM.
Paul Orberson, President and Founder of FHTM added, “We are excited about this ruling, but, frankly, we trusted the system to get the right result. FHTM is moving forward with the business of doing business.”
Now I was not able to find the actual Judge’s ruling, but I did receive a copy of a draft, where the plaintiffs are going to appeal the Judge’s decision, so this is not over yet.
I also want to direct our viewers over to Ty Tribble’s blog because he has been following this for a while and have some great back story on things.
Direct Selling News wrote a great article on the growth of MLM in Peru, tha tis well wroth the read. To many times we in America seem to forget that Network Marketing/Direct Sales is a live and growing worldwide.
Direct selling is alive and doing well in Peru. The industry, which is the largest category within non-store retailing in the country, has allowed hundreds of thousands of Peruvians to create their own business opportunities, and also helped to reduce poverty. And, according to industry leaders, the future looks bright.
Direct selling started in Peru in the 1960s. When the country’s military government imposed severe restrictions on imports in order to promote and protect local production, one company—Yanbal (currently known as Unique, a manufacturer of cosmetic products)—adopted direct selling as its marketing model, providing women with an opportunity for economic and professional growth that did not then exist. In the following years, Avon, Natura and Belcorp entered the market.
Direct selling grew slowly over the next 40 years. In 2001, an initiative by Avon led to the creation of CAPEVEDI (Camara Peruana de Venta Directa), the Peruvian Chamber of Direct Selling (www.capevedi.com). With the participation of Unique, Belcorp and Natura, CAPEVEDI helped promote the spirit of cooperation between direct selling companies as well as represent the interests of its members to public and private institutions for the development, consolidation and prestige of the business model.
In the following years, direct selling grew quickly. The period between 2004 and 2009 showed the strongest growth—an average rate of 24 percent per year—generating important sources of incomes for more than 350,000 independent entrepreneurs, more than 90 percent of whom were women.
In 2011, the growth of direct selling continued to expand, not only in the capital city of Lima, but also in the provinces, which represent 47 percent of the independent entrepreneurs. Top selling products last year were cosmetics with 25 percent and nutritional products with 18 percent of market participation in direct selling. Within the cosmetics category, direct selling had 57 percent of the market versus 43 percent in retail.
As we have their reports from direct selling industry’s six giants for last year, it’s the time to review and compare their growths. Just like it has been the case throughout the year, we see mixed results at the end of 2011.
The last 5 years’ winner in sales growth is clearly, Natura. Natura increased its sales by 103% in this period! With its 83% growth, Herbalife is a strong second! The slowest of all is Avon, growing at quite modest rates starting from 2008.
It is true that Avon is the biggest of all but at this pace, it should not take too long for other public companies to catch. As an example, while Herbalife’s sales was 22% of Avon’s in 2007, this is 31% as of end-2011. On top of this, Herbalife CEO Michael Johnson announced their “aspirational goal of 10 billion volume points by 2020″. This is more or less equivalent to $8.8 billion sales! On the other hand, Avon is most likely to be overtaken by the end of 2012 by Amway who announced 17% growth in 2011, reaching a turnover of USD 10.9 billion!
MLM News this week focuses on the massive grow in the network marketing community in 2011. While the general economy may still be floundering, direct selling seems to be on the up swing, with ViSalus, Vemma, Yoli, Plexus and others leading the trend!
Vemma breaking records after launching Bod-e breaking the $1 million in daily sales number!
I just got word from Vemma of some fantastic growth numbers. First is the financial records. Vemma has broken the $1 million in daily sales mark. And November & December which are usually down months in direct sales due to the holidays, set two record breaking months in field growth. On top of that Dr. Oz has just signed as a key note speaker for the 2012 Vemma “Believe” annual convention! Read the full article here!
Yoli growing by double digits monthly due to the Yoli Nation’s belief in the Yoli Better Body System!
ViSalus goes from $34 million in 2010 to $234 million in 2011!
This week has rocked for ViSalus! Blake Mullen, CMO at ViSalus just shot me over the great news that ViSalus has grown from $34 million in 2010 to $234 million in 2011. Read the full report here!
Direct Selling Association News!
Arbonne Highlights Commitment to Ethics, Professionalism through Code Communication Initiative
As an active participant in DSA’s Code of Ethics Communication Initiative, Arbonne consultants and company executives alike have benefited from this unique opportunity to promote the wellness product company’s high standards for ethical behavior and professionalism.
“Our participation in the initiative helps us highlight the fact that Arbonne stands firm in its commitment both in the field and at the executive level,” said Ashley Good, Senior Vice President and General Counsel for Arbonne. “It allows us to foster the right culture by promoting ethics and showing that we connect with the rest of the industry through our DSA membership and our commitment to the Code of Ethics.” Read the full article here!
Investor’s Business Daily recently named its “Best of 2011,” a list of top 100 companies of 2011 based on stock performance. Blyth, parent company to DSA member PartyLite came in at number 41, Nu Skin at number 51, Herbalife at number 84 and Kirby at number 90.
PartyLite is planning the construction of a £1 million storage facility in the U.K., to be completed later this year. It will be built alongside the existing 9,400 square meter factory that was built there in 1997.
Tahitian Noni announced it will officially change its name in the U.S. to Morinda this April at its International Leadership Conference in Salt Lake City. Its new tagline will be Bioactives. John Wadsworth stated, “The new name stays true to our noni roots (since Morinda citrifolia is the scientific name for noni), while broad enough to capture the new bioactives vision. The name Morinda symbolizes everything that this company represents—past, present and future.”
MLM Startup Spotlight!
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Stay tuned for additional promotions.
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Yoli has been setting new double digit growth records month after month since the release of the Yoli Better Body System. Now, having tested the Better Body System personally I can say it does work; I lost 15 lbs, in 6 weeks. However, a great weight management system is only as good as the team which shares with the world how great it is. Check out the success of the Yoli Nation.
I also talked with Yoli co-founder, Robby Fender this week to see if I could find out if co-founder, Rick Eisele had left Yoli. The good news is Rick is still part of the Yoli family and all is good. With the solid executive team Yoli now has in place, Rick has been able to move back home with his family on a full-time basis to also help with the family business.
Isagenix, is having what I call a resurgence. A few months ago, I started seeing some great Internet marketers join this company because of the products, and the success those products had on them personally. Well now we are seeing veteran network marketers who are tired of all the hype and failed start-ups moving to this well funded, debt-free company.
In closing, I have a great friend who has left the network marketing profession to launch his own venture in the sport arena. He contacted me to see if could help him sell his very successful Body By Vi, distributorship. If you want to join one of the fastest growing companies in the weight management field, contact me personally.
Last night I caught up with Co-Founder Corey Citron of Yoli and had a chance to schedule an interview with him today. Now it has been months since we reviewed Yoli in their pre-launch, so it was great to catch up and find out how the distributors are doing.
You can listen to this interview below.
Here are the two links to my conversation with Corey Citron, Co-Founder of Yoli.
Yoli founder, Corey Citron, who is arguably the most controversial leader in MLM, will be with us tonight on Aces Radio Live.
I’ve known Corey for close to a decade and have supported him and his teams over the years. Although Corey and I don’t always agree in every area of business, the one area, we are 100% on the same page, is serving our teams all of the time.
Although Corey’s competition may not have the nicest things to say about him, when you talk to his business partners, downline team, and mom, they all tell you the same thing… He loves helping other people succeed.
Corey, did not enter MLM with all the answers and after stumbling his way through a dozen or so companies, he finally started to get it right.
Corey and his partners created one of, if not the first successful online marketing systems in history, and has gone on to develop several of the most popular and successful online marketing systems being used today in companies like XanGo, Life Force International, and now Yoli.
This interview tonight will ask some hard questions. If you want to hear the back story of Corey’s success then do not miss this call.
If you want to see how a wet behind the ear kid, has grown into one of the most successful under the age of 30 leaders in the MLM arena, then listen in on our show at Aces Radio Live tonight at 5:00 pm central.