Direct Selling/MLM

If you’re in Direct Selling, you know it’s a heavily regulated space where the line between compliant growth and serious legal exposure is often nuanced. FTC enforcement actions against companies like Herbalife and AdvoCare, along with state and class action litigation involving brands such as LuLaRoe Young Living, and IM Mastery Academy/IYOVIA show how compensation structures, earnings claims, and salesforce behavior can trigger significant liability. More recently, the FTC has proposed new rules aimed squarely at deceptive earnings claims and recruitment-driven marketing, signaling continued scrutiny of how opportunities are promoted and how sales representatives are trained. In this environment, compliance is not just about what’s written in your compensation plan or contracts — it’s about how your policies, procedures, training materials, and enforcement practices guide thousands of independent sellers in the real world. You need an attorney who understands the regulatory framework, sees the gray areas, and can help design practical rules that keep your salesforce on the right side of the law while still allowing them the freedom to sell.

I’m Rick Mortensen, and I can help. I worked as general counsel at two very different direct selling companies; one was a party plan cosmetics company with a $15 core product; the other was an entrepreneurial education company with products ranging from $2,000 to $20,000. At both companies, I oversaw the implementation of a new comp plan, international expansion, and updates to compliance policies. I know what it’s like to get a notice from a regulatory agency and how to respond. I’ve drafted purchase agreements, distributor agreements, and policies and procedures, and implemented compliance programs. I’ve trained distributors on how to tell their personal stories without running afoul of the law, giving them the confidence to sell. I also know how to dive in and analyze all the challenges of selling a particular product — I did it with cosmetics and education, and I can do it with your products.

Call or email, and let me know how I can help your direct selling company.