It’s been just below three weeks since AdvoCare introduced it was ditching it’s MLM enterprise mannequin.
As a part of my ongoing seek for solutions, I got here throughout an archived Freedom of Info Act request checklist from the FTC.
Did the DSA know AdvoCare was going to screw over its distributors prematurely?
Between October 1st, 2018 and April thirtieth, 2019, the FTC responded to twenty-four DSA FOIA requests (not all are proven beneath):
The AdvoCare FOIA request was marked closed (responded) on March twenty first.
Every request is submitted by Joseph Aquilina and seeks info on “investigations/complaints” concerning a particular MLM firm.
Joseph Aquilina is the DSA’s “ethics and compliance” lawyer.
In AdvoCare’s bombshell Might seventeenth announcement, the corporate cited “confidential talks with the” FTC as the rationale it was ditching its MLM enterprise mannequin.
So far there was no public announcement or acknowledgement from the FTC concerning these alleged talks.
For the FTC to strategy AdvoCare, there had to have been an investigation beforehand.
Of their FOIA FAQ, the FTC states their objective to answer requests is “roughly one month”.
FTC investigations take time. That means there’s a excessive likelihood the DSA had a heads up on an FTC investigation into AdvoCare.
Seeing as AdvoCare are a DSA member, there’s clearly communication backwards and forwards between the 2 firms.
How a lot did the DSA know? I can’t say for certain.
So far as I can inform, the DSA has didn’t problem any public assertion concerning AdvoCare’s Might announcement.
Whereas I can’t say I do know what the FTC and AdvoCare had been speaking about with certainty, the corporate eliminating its MLM enterprise mannequin suggests there wasn’t sufficient retail exercise throughout the firm.
This is able to not solely be in opposition to the DSA’s code of ethics (I do know, I do know, don’t chuckle), but in addition one thing their new Direct Promoting Self-Regulatory Council ought to have picked up?
the DSSRC was launched by the DSA on January 4th, 2019. It’s a “self-regulatory program” that guarantees to “monitor the whole U.S. direct promoting business”.
The DSSRC is a third-party, self-regulatory entity created on account of deliberations of DSA’s management, and dialogue with the Federal Commerce Fee (FTC) to extend the oversight of the direct promoting business.
Supposedly, the DSSRC is to conduct “impartial investigations” and report “unresolved violations of non-compliant firms to the Federal Commerce Fee.”
Will my firm’s plan be reviewed?
Sure, nevertheless, the frequency of the opinions of firms continues to be being decided.
If AdvoCare’s enterprise mannequin was problematic such that the FTC launched an investigation and stepped in, why didn’t the DSA or DSSRC decide up on it?
And in the event that they did, why didn’t they take any motion?
Since publishing its personal insurance policies and procedures on January 14th, the DSSRC has been publicly dormant.
As a DSA member AdvoCare pays the group charges, so uh… yeah.
Maybe it wasn’t within the DSA’s greatest pursuits to provide AdvoCare distributors a heads up their incomes had been about to be obliterated (I do know, I do know, ethics… cease laughing).
With respect to AdvoCare’s conduct in the direction of its distributors, what’s achieved is finished.
Distributors are abandoning ship and MLM lawyer Kevin Thompson reckons AdvoCare are sending out threatening letters.
From a tutorial perspective, the urgent problem is whether or not or not the DSA has particulars on the FTC’s investigation into AdvoCare.
And in the event that they don’t, why not?
In line with the FTC, an investigation into AdvoCare wouldn’t fall underneath their guidelines for exemption.
Investigatory data compiled for legislation enforcement functions.
Except maybe there’s a pending AdvoCare legislation enforcement motion coming that we don’t find out about.
One closing phrase, whereas I’m certain a few of you might be contemplating blaming the DSA for doubtlessly not supplying you with a heads up – don’t.
The DSA is and at all times has been beholden to its members. MLM firms pay the DSA’s payments, not distributors.
As distributors of DSA member MLM firms, it’s essential to recollect they’re not looking for you.
As this case would possibly but show, the DSA’s obligations to its members would possibly very nicely lengthen to info suppression – even when over 100,000 AdvoCare distributors get screwed over within the course of.
Pending the FTC, AdvoCare and even the DSA revealing simply what the heck is happening right here, keep tuned…