Tag Archives: Federal Trade Commission

The sheriff with the mirror

There’s a saying in old country-and-western television shows: “There’s a new sheriff in town.”

That means an official law officer has come to bring order and justice to the people, stopping long-standing criminal activity.

In a way, our shared profession did just that… but our sheriff carries a mirror.

Let me explain.

A long-standing issue with our profession is that it seems to be loosely regulated, and it’s unclear to the ordinary consumer who is telling the truth.

That means someone who makes unsubstantiated and grandiose claims could get away with masquerading as a legitimate network marketing/direct sales/party plan/ etc type of business. When it falls apart, the people who joined that company are hurt financially and have lost a lot of social credibility among friends and family.

When a company is investigated by the FTC (Federal Trade Commission), the news makes big headlines and tends to paint all of us with an unfavorable reputation.

But how do we stop the destructive process early?

Earlier this month a solution was announced:

the Direct Selling Self-Regulatory Council (DS-SRC)

which will be administered by Advertising Self-Regulatory Council of Better Business Bureaus.

This is a place people inside and outside our profession can report grandiose or misleading claims of product performance or income, including for companies who are doing so in order to create a competitive advantage. Substantial proof may be required. This will not be a place for airing petty nor non-evidence squabbles.

There is a review process, opportunity for clarification and change by the accused party, and a published case study of the process and results. Companies that refuse to participate in the process, stop responding before the process finishes, or refuse to remove the claims in question will be referred to the FTC or other governing agency.

I see this as a welcome step to increase the reputation of our shared profession.

Yes, we are the sheriff, and we police ourselves now.

It’s not the only step toward cleaning up our profession’s image, yet it’s a necessary one.

Read more at this legal news web site.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #trsc #FTC #regulations #DSSRC #partyplan #networkmarketing #mlm #leveragedsales #directsales