Keynote Remarks of FTC Chairwoman Ramirez DSA Business & Policy Conference MLM and Network Marketing News and Information

Direct selling, a $36 billion industry, plays a robust role in the marketplace and has the capacity to provide consumers with valuable goods and services and an opportunity to try an entrepreneurial experience. The Federal Trade Commission, as you know, has been active in this area for decades. We hear often from members of the direct selling industry, and one of the frequent themes is the negative public perception about how the industry operates.

Multi-level marketers have a tremendous opportunity to address these concerns by enhancing transparency and fostering credibility across the industry. There are three important facets to this that I would like to address this morning: self-regulatory initiatives to improve compliance and level the playing field; realistic and candid communication about the limited nature of the earnings potential; and practices showing that MLM companies are making real sales to real customers.

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