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Tags >> MLM Advisory
May 11
2012

Business Associate Advisory - April 2012

Posted by Gerald Nehra in MLM Attorney , MLM Advisory , door-to-door selling , direct selling association , direct selling , Burnlounge decision , Burnlounge
Gerald Nehra

NEW RESTRICTIONS ON DOOR-TO-DOOR
SELLING IN DELAWARE

Prepared by Rick Waak, who is available to discuss at 269-623-6222

 

A recently enacted law will impose new restrictions on door-to-door direct sellers in the state of Delaware. The law prohibits any cold-call direct sale from occurring between the hours of 8p.m. and 9a.m. It also requires that door-to-door sellers obtain a government-issued identification card and display it whenever they make a solicitation at a consumer’s residence.

The law becomes effective 120 days from the date it was signed by the Governor during the first week of April, 2012. As yet, neither the fee nor the procedure required to obtain the identification card from the Delaware Department of Finance has been specified.

Exemptions from the law are allowed for public utility crews and house calls by non-profit organizations or cable television systems. Also exempt are in-home solicitation events that are arranged and conducted pursuant to the consumer’s invitation, such as home party sales events.

Client companies who have independent sales representatives resident in Delaware or bordering states should alert those sales reps to inquire of the Delaware Department of Finance and watch for local news reports regarding compliance procedures.

 

DIRECT SELLING ASSOCIATION   ---    2012  --- ANNUAL MEETING

Rick Waak & Gerry Nehra will be attending at the Gaylord Texan Resort in Grapevine, Texas on June 3, 4, & 5. More information is available at www.dsa.org. Please drop by our booth, say “Hello”, and receive this year’s gift.

 

BURNLOUNGE ORDER - NOT BEING IGNORED   - DSA LAWYERS CONSIDERING RESPONSES

 

The Direct Selling Association Lawyers Council held a conference call this week to consider whether and what actions the Association might take in response to the recent Order issued by the U.S. District Court in the widely followed case F.T.C. vs. Burnlounge, Inc. et.al. (See March Business Associate Advisory for a summary of the case and Order).

In its monthly conference call held on April 24, the DSA Lawyers Council discussed the potential implications that the Order may have for the direct selling industry, and considered a range of possible actions that could be taken to respond to what it considers to be an erroneous standard of legitimacy regarding internal consumption that the Court applied in the Order. The options include:

Simply ignore the ruling as another example of the proliferation of this erroneous standard.

  • Seek to intervene in the case or file an Amicus appeal brief attempting to amend the judgment and modify the definition.
  • Meet with the staff of the FTC to express the industry’s continued concern about the promotion of this erroneous standard, and to seek further clarification about their views on internal consumption.
    Meet and communicate with members of the U.S House and Senate about the industry’s concerns and potentially seek a legislative redress, such as the DSA model pyramid scheme law.

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Prepared by Rick Waak, who is available to discuss at 269-623-6222

 

MLMIA Annual Meeting & Tuesday Calls

Save the dates of September 28 & 29 in St. Louis. Further information will be made available on the MLMIA.COM web site.

The Tuesday night calls are very well received and are growing in participation, and are free to members and non-members alike.
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Aug 20
2011

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