FTC Proposed Business Opportunity Rule

MLMIA Speaks Out



By Jeff Babener, Copyright 2006


The MLMIA, Multilevel Marketing International Association, has urged members of the MLM, Direct Sales, Direct Selling, Network Marketing and Party Plan industry to oppose an initiative of the FTC in its draft of the FTC Proposed Business Opportunity Rule. The MLMIA, www.mlmia.org, is a 20 years old trade association based in Orange County , California. Members of the organization include MLM companies, MLM distributors and MLM industry support businesses and professionals. The MLMIA provides industry education and promotes legislation and policies that support the industry. It is a promoter of consumer rights and ethical practices of industry members.


In April 2006, the FTC released a sweeping proposed change in its FTC Business Opportunity Rule. The proposal was immediately and strongly criticized by representatives of and experts in the MLM, Direct Sales, Direct Selling, Network Marketing and Party Plan industry. The process to a completed Rule is expected to last 18 months to 3 years. For extensive analysis, text of the actual FTC Proposed Business Opportunity Rule and ongoing updates, please visit www.mlmlegal.com.


MLMIA Position Statement on FTC Proposed Business Opportunity Rule


The MLMIA has engaged in a fund raising drive to support filing of position statements and analysis with the FTC concerning the FTC Proposed Business Opportunity Rule. The MLMIA announced its engagement of a Washington D.C. based law firm, led by Jonothan Emord, to file its formal comments on the proposed rule. Support was urged to address the tremendous hardship that would fall upon an industry with approximately 14 million earners in the U.S. alone. Below is the actual text of the "call to action" statement issued by the MLMIA on the FTC Proposed Business Opportunity Rule.


MLMIA Call to Action Statement:



Thank you to all those who made a generous donation to the MLMIA Legal Fund these past two weeks. A separate bank account has been established for money collected. The Association plans to fund with these monies, initial comments, rebuttal comments, and if enough funds are donated, a marketing and economic survey to be filed with the FTC.

The MLMIA is committed to doing the best we can to support our Network Marketing Industry. The new FTC Business Opportunity Ruling will be a substantial battle. Without the entire industries continued support the MLMIA will not be able to successfully complete the task at hand. Our position with the FTC is one of believing that the current ruling is sufficient. No additional ruling is necessary. It is generally thought that the FTC will adopt a conciliatory form of the ruling. If so, we will continue the fight to have the ruling appealed and rescinded. Win or Lose, the Association will not stand by idly, so we have retained the BEST.

Ed Jarrin, MLMIA President, has asked several Industry members for donations for the legal fund The MLMIA will, to the extent of its monetary resources, stand by Jonathan in this fight and your support will be appreciated in writing to the FTC with your comments. Any financial support given to the MLMIA for this endeavor will be passed on anonymously to Mr. Emord through our Legal Fund.

The MLMIA, through its web site and newsletter, will keep the entire industry up to date regarding the current status of the FTC ruling and our opposition to it.

Thanks again for your faithful support!

Del Hickman, Executive Director

### End of MLMIA Call to Action Statement ###

Please click here to download and read the complete text in PDF format of the FTC Proposed Business Opportunity Rule: PDF Document.


Look for ongoing updates on the status of the FTC Proposed Business Opportunity Rule at MLMLegal.com. Copyright of Jeff Babener, Babener & Associates






Other Pages of Interest

FTC Proposed Business Opportunity Rule: Actual Text

In April 2006, the FTC released a sweeping proposed change in its FTC Business Opportunity Rule.

read more »

FTC Exempts MLM/Direct Selling from FTC Revised Proposed Business Opportunity Rule

In April 2006, the FTC released a sweeping proposed change in its FTC Business Opportunity Rule.

read more »

FTC Proposed Business Opportunity Rule: Resources and Analysis

Visit the FTC Proposed Business Opportunity Rule overview page to read the actual text, analysis and industry response.

read more »

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