Lawsuit 1
There are certain bodies and commissions given the task of regulating the operations of direct trading firms to protect citizens. Recently the responsible bodies have introduced new regulations that target the direct selling industry by giving restrictions on how they are allowed to operate. The laws have been profusely opposed by many industry leaders who own and manage direct selling companies saying they are not fair. When setting the laws, the relevant bodies have not adhered to the right legislative processes as they do this without proper authority. Entrepreneurs say that the laws may end up affecting the entire direct selling industry and customers in negative manners. Find out more on Neora Lawsuit
Customers depend on the direct selling industry to be availed with products and services to satisfy their needs and the results would not be pleasant. Instead of using the actual data to decide and make changes, the bodies want to set regulations based on their own interpretation. The government has legalized the direct selling companies in the different states and it would be unfair to impose rules that limit their operation using informal procedures. The laws have been suggested so as to safeguard customers against some firms that use pyramid schemes to exploit them. Pyramid schemes are not legal in the country since they tend to refuse offering the products in demand which usually results to collapsing of the economy.
All direct selling companies are compliant with the given rules and regulations which makes it difficult for pyramid schemes to be deployed here. Sometimes pyramid schemes in the direct selling industry occurs when service providers compensate business participants for primarily signing up other business participants. The business is supposed to compensate business participants mainly for product sales and not for signing up new participants. While it is important to set regulations protecting ordinary consumers from the pyramid schemes, it is also necessary to consider the legitimate service providers. If the bodies were to get permission to modify the rules without proper authorization it might cause economic decline and other unpleasant consequences. More on Neora Lawsuit
The entrepreneurs have filed a lawsuit against the regulatory bodies to challenge the proposal since it affects every other business in the direct selling industry. It is important for the regulatory bodies to abide by the stated legal channels when setting rules to ensure that fairness and justice is served. Particular percentage of compensation needs to be met for the direct selling companies to be deemed legal and not pyramid schemes. Thorough investigations and analysis should be conducted to ensure that a business is actually not a pyramid scheme through the data obtained. Statistics got from the analysis should be used when deciding whether a business is legit or of it is a pyramid scheme to ensure fairness and customer protection at the same time.
More info https://www.youtube.com/watch?v=oQ4RAjrRt7I
