Living An Epic Adventure - Kevin Thompson MLM Attorney wrote a very solid and informative article regarding the Burn Lounge decision and how both sides have been using the outcome. This article is article is a must read for anyone who is truly interested in better understanding the issues. The Summary for those who hate to read :) Summary The Court successfully threaded the needle on the issue of “ultimate users,” essentially creating two classes of participants. The Court provided several factors throughout the opinion to help outsiders deduce the motivation driving consumption. This is especially helpful in assessing HLF. The opinion will require the FTC’s pyramid scheme expert to create another analytical framework to distinguish pyramid schemes from legitimate direct selling companies (assuming they need one). The Court adopted the logic provided by the FTC in its 2004 Staff Advisory Opinion. The Court eliminated all confusion regarding Omnitrition, as it completely ignored the widely referenced dicta that consumption from participants cannot count as sales to “ultimate users.
Posted on: Wed, 18 Jun 2014 12:52:53 +0000
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