January 10, 2018 Last week, the Federal Trade Commission (the “FTC” or “Commission”) released legal multi-level marketing (“MLM”) guidance for direct sellers, providing important practice insights for those that follow the space. What are the key takeaways for MLMs?
FTC Issues Guidance on Legal Multi-Level Marketing Read More »
July 31, 2015 A Federal District Court Judge in the Central District of California this week threw out a lawsuit against Herbalife, Ltd. (“Herbalife”), which alleged that Herbalife had violated federal securities laws by misrepresenting various aspects of its business operations. This is the second amended complaint that has been dismissed by the Judge in
Case Dismissed against Multi-Level Marketing Company Herbalife Read More »
March 24, 2015 Earlier this month, the cosmetics multi-level marketer Mary Kay Inc. (“Mary Kay”) sued Internet coupon company RetailMeNot, Inc. (“RetailMeNot”) in a federal court in Dallas for alleged trademark violations. Specifically, Mary Kay’s trademark lawsuit takes issue with the Mary Kay coupon codes that RetailMeNot purportedly provides to online consumers. Should the RetailMeNot
Mary Kay Files Trademark Lawsuit Against Internet Coupon Giant RetailMeNot Read More »
March 23, 2015 Last week, Judge Dale S. Fischer dismissed a federal class action lawsuit against Herbalife, Ltd. (“Herbalife”) and three of its corporate officers, who were accused by Herbalife shareholders of operating the company as an illegal pyramid scheme. The lawsuit alleged that Herbalife artificially inflated its stock price by misrepresenting that the company
Herbalife Class Action Lawsuit, Pyramid Scheme Allegations Dismissed Read More »
January 30, 2015 This Wednesday, hip hop artist Dwayne Michael Carter, Jr. (better known as Lil Wayne) filed a federal lawsuit in New York City against his label, Cash Money Entertainment, to the tune of over $51 million. Carter’s music contract suit includes eight causes of action, including breach of contract, conversion, breach of fiduciary
Lil Wayne Files $51 Million Music Contract Lawsuit Against Label Read More »
On June 2, 2014, the United States Court of Appeals for the Ninth Circuit upheld a permanent injunction awarded to the Federal Trade Commission (“FTC”) against multi-level marketer BurnLounge, Inc. The injunction, issued by the district court in 2012, barred BournLounge from continuing its business operations. The Court upheld the district court’s ruling that BurnLounge
Federal Court of Appeals Upholds Injunction Against Multi-Level Marketing Business Read More »
Yesterday, Fortune Hi-Tec Marketing, Inc. (FHTM) and its principals (which were individually named in the complaint), settled a suit brought by the Federal Trade Commission (FTC) alleging that the company had engaged in an international pyramid scheme for the last four (4) years. The FTC’s complaint alleged that FHTM falsely represented to consumers that they
Multi-Level Marketing Firm Settles Pyramid Scheme Allegations with the FTC Read More »
In April, 2013, we distinguished the difference between multilevel marketing (“MLM”) and a pyramid scheme. (See Multi-Level Marketing Programs Vs. Pyramid Schemes). Two days ago, United States Senator Edward J. Markey of Massachusetts sent separate letters to the Federal Trade Commission (“FTC”) and the United States Securities and Exchange Commission (“SEC”) urging them to investigate
United States Senator Seeks Investigation into Alleged Pyramid Scheme Read More »
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