pyramid schemes
Experts fear other social platforms may follow
By: David Bland
The loss of TikTok as a potential tool for reaching the dynamic Gen Z market is a blow to the channel.
Most concerning is the prospect that TikTok’s decision will act as a bellwether for platforms more vital to the direct selling channel, such as Facebook and YouTube.
The social media platform TikTok took the direct selling channel by surprise in December 2020 when it announced a sweeping addition to its community guidelines that included a ban on multi-level-marketing content. It is the first online social platform to place an outright prohibition on direct selling and MLM activity.
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More than 50 enforcement actions taken in ‘Operation Income Illusion’
By: Jennifer Mills
On Dec. 14, the Federal Trade Commission (FTC), along with 19 federal, state, and local law enforcement partners announced a nationwide crackdown on “scams that target consumers with false promises of income and financial independence,” which, they say, have been particularly rampant during the pandemic.
The regulatory agency initiated four new enforcement actions and one new settlement alleging deceptive income claims in violation of the FTC Act and noted that these actions are part of its broader initiative “Operation Income Illusion,” intended to dramatically increase claims enforcement.
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Regulators warn enforcement is a ‘top priority’ at a recent industry conference
By: David Rauf
“I caution you to stay on the straight and narrow because now, more than ever, this is a top enforcement priority for me, and I hope, the agency.”
—Noah Phillips, Commissioner, Federal Trade Commission
A commissioner with the Federal Trade Commission (FTC) voiced a tough message for the direct selling community at a recent online event, saying the regulatory agency will remain aggressive in its approach to policing the channel.
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