I originally considered titling this post “How To Dupe Marketers Into Paying Capitol Hill Lobbyists” but thought I’d be kind.

For those who have been following the issue, the Federal Trade Commission promulgated a proposed rule in April that would essentially destroy MLM/network marketing and curtail the online marketing of business opportunities in general because of draconian disclosure requirements. These disclosures would include earnings disclaimers, contact information for 10 purchasers, etc. If you’re a masochist or have insomnia, here is a link to the proposed rule.
After receiving tens of thousands of hostile public comments, the FTC has made no decision.

However, the masses are panicking and the lobbyists are hyping the bogeyman to generate more work.

I telephoned one of the people handling the proposal at the FTC’s Bureau of Consumer Protection, Division of Marketing Practices. No rule is imminent. There may never be a rule. There may be hearings. There may be workshops.

There may be a modified rule sometime in the future. That’s likely because the government prefers to control through a combination of taxes and regulation.
If an online marketer decides to pay for lobbying on the issue, make sure that the recipient isn’t the firm of Redundant, Irrelevant & Redundancy. In plain English, make sure the money is actually being spent on something worthwhile instead of duplicating work already being done by others, such as the MLM/network marketing organizations. It is naive to think that the Amways, Primericas, and Mary Kays of the world are going to do nothing as they’re regulated out of business.

About the Author

With an advanced international law degree from Georgetown University and more than 14 years of real world legal experience, Attorney Mike Young shows entrepreneurs how to protect and grow their businesses online. He's the author of Internet Marketing Legal Secrets Revealed. Not just a lawyer who focuses exclusively on Internet and marketing law, Mike’s been working with computers for more than 27 years (his first computer was an Atari 400 with 8 KiB RAM) and started representing Internet businesses back in 1996.