29 November 2019

October 2019 : AdvoCare

FTC served its justice: AdvoCare is  banned from multi-level marketing because of its pyramid scheme practices, and it owes the FTC $150 million. Two of their top-level reps are also banned from multi-level marketing for…
21 September 2015


The FTC has prohibited the sale of Vemma drinks in the US because its Marketingplan is accused as Snowball Scheme. Please read : https://www.ftc.gov/news-events/press-releases/2015/08/ftc-acts-halt-vemma-alleged-pyramid-scheme
01 October 2013

Relaxation for Email Advertising – September 2013

Under competition law aspects, where certain requirements are fulfilled email advertising targeted at existing customers may be admissible even without the customers’ consent. Under data privacy aspects, this has been decided differently up to now.…
20 September 2013

Countdown Auctions are Illegal in Germany - May 2013

The German Higher Administrative Court in Baden-Württemberg found in its decision of 23 May 2013, file no. 6 S 88/13, that countdown auctions are inadmissible as illegal gambling. Actually, this decision has Germany-wide effect.
25 June 2013

New Revocation Rules for the Directselling Industry based on the EU-Consumer Protection Directive

The German Government is obligated to implement the new rules until December 13th. 2013 The new consumer protection law becomes valid for contracts concluded after June 13th 2014. Summary of new provisions: Withdrawel period is…
03 August 2012

Germany has to adapt its rules regarding withdrawal right for consumers in door-to-door contracts

21.06.2012. The European Commission has given Germany two months to comply with European Union rules protecting consumers in door-to-door contracts According to the opinion of the EU Commission, Germany adds in its legislation a requirement…
27 July 2012

Act for a better consumer protection against cost traps in the internet

The modification of Art 246 of the Introductory Act to the Civil Code (EGBGB) will become effective on the 1st. of August 2012. According to this, commercial sellers offering products to final customers via internet,…
20 April 2012

OLG Frankfurt decided on 12th May, 2011 on the legality of a MLM-Compensation Plan

    For the consideration of the legality of a compensation plan of a MLM Company, the Court took into account the whole compensation plan as a unity, instead of checking its individual components. The…
15 March 2012

Belgian Court Decision against snowball scheme

(Brussels, 28 November, 2011. Multilevel Marketing (MLM)-Company was adjudged by the Commercial Court in Belgium (A.R. 2004/7787) due to a prohibited snowball scheme.     The Brussels Commercial Court has found a MLM-Company responsible for promoting…