INITIAL DECISION In the Matter of the Complaint Against UNIMAX, INC.,

By Jeffrey A. Babener © 2003 The Direct Sales Industry has patiently survived almost a decade of regulatory tension on an issue critical to the MLM business model — the legitimacy of “personal use” by distributors. Uncertainty on this point has resulted in unwanted FTC and state consent decrees and attacks on MLM companies that place a cloud over the direct selling industry. New proposed federal legislation, H.R. 1220, would formally recognize legitimacy of “personal use” along side of retail sales outside the network, and bring relief to network marketing.

By Jeffrey A. Babener © July, 1993 The topic of inquiry for many distributors and companies most recently is a rumor that the SEC (Securities Exchange Commission) is about to shut down the network marketing industry on the basis that network marketing constitutes a sale of a security. The answer to this inquiry is that there is good news and there is good news.

Evidence Showed Over 96 Percent of Recruits Lost Money Distribution of $20 million dollars in consumer redress will begin in the near future for victims of SkyBiz, an alleged massive international pyramid operation based in Tulsa, Oklahoma. The money for consumer redress is part of a settlement between the pyramid's promoters and the Federal Trade Commission, which charged that their scheme violated federal laws.

By Jeffrey A. Babener © February, 1997 In a forward-looking piece of legislation, the State of Texas has done a great service to the direct selling industry.

BY JEFFREY A. BABENER ©AUGUST, 1996 Network marketers can hardly escape the term "70 percent rule." They see it in distributor agreements and policies and procedures. The term is mentioned on their product order forms. Regulatory agencies and better business bureaus talk about the 70 percent rule, as do trade associations and consumer journalists

There is a part of the famous Amway case that is little known or talked about. Read more in this article.

By Jeffrey A. Babener © November, 1996 LITTLE COMPANY - BIG IMPACT It was a burst of MLM history, over in a nanosecond - a little known company locked antlers with the government for a moment in time. However, the outcome will resonate for this company and others for years to come. Why? Why is it that an obscure company selling gold coins and phone cards will so impact a $20 billion industry? And, is there a message?

By Jeffrey A. Babener © July, 1998 FDA PROPOSES NEW HEALTH CLAIM RULES Four years after the passage of the historic Dietary Supplement Act of 1994, in April 1998, the FDA has proposed rules on permissible health claims for dietary supplements.

By Jeffrey A. Babener © 1999 The Industry Owes Amway. No legal ruling has had more impact on the direct sales industry than the landmark FTC v. Amway decision. (In the Matter of Amway.) In 1975, the FTC accused Amway of operating as an illegal pyramid. After four years of litigation, in 1979, Amway prevailed. An administrative law judge ruled that Amway's multilevel marketing program was a legitimate business opportunity as opposed to a pyramid scheme