The problem is that individuals and distributor groups DO make illegal health claims, often through ignorance of laws and regulations. There are prosecutions occurring right now for exactly this reason — including the recent one against Monavie itself, despite the claims being specifically outlawed and disclaimed by the company. (The company managed to negotiate a reasonable settlement, but at what cost in bad publicity and legal costs?)

Re “personal purchase in order to become an affiliate”: it’s entirely practical and really easy to establish. It’s one reason why some companies — notably Amway — requires distributors to be able to document that a minimum of 70% of any purchases from the company or upline are for resale. (But, like its 10 customer rule, these are typically “honored in the breach” by distributor organizations.)

If you breach these rules, even in a legitimate MLM business, you cross the line into illegal pyramid selling territory.

John

Interested in the item covering “personal purchase in order to become an affiliate” is this in terms of just affiliate schemes or general for Network Marketing. Don’t see how this is practical if there is in fact a deliverable. Or even an admin fee for setting up accounts, web sites whatever. After all it is clearly recognised there is a cost factor involved in starting any business.

Also – “No more compulsory personal purchases before being eligible for commissions.” Again reason would suggest the desirability of providing on-going evidence of activity to justify payment – not just holding a position. Some evidence of personal sales or purchases would be appropriate.

It seems these rules, as expressed are targeted more at Pyramid schemes, where there is no legitimate business or product/service delivered.

Eric