The FTC is proposing new rules that would require the nation’s estimated 1,500 multilevel marketing companies such as Orlando-based Tupperware to tell potential recruits how many sales representatives have failed to earn more than startup costs, as well as how many customers have filed lawsuits for deceptive practices, among other provisions in a 90-page filing.
The FTC says the proposed new rules will discourage industry fraud. But multilevel marketers are issuing dire warnings of the adverse impact on the industry and even the country.
“In its present form, the FTC’s proposed regulation would be devastating, if not fatal, to the direct sales industry,” says Keith B. Laggos, publisher of Network Marketing Business Journal, who also warns the change could drive the entire U.S. economy downward into a recession.
Will proposed FTC multilevel marketing rules crash Tupperware’s party?
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