The Federal Trade Commission (FTC) has recently praised the direct selling industry, but has also made a clarion call for a greater adjustment is made. The FTC Commissioner Maureen Ohlhausen, during a speech at the National Press Club in Washintong, praised the efforts of the MLM industry is towards self-regulation. "I congratulate the association for their [Council of Better Business Bureaus] which has increased awareness and understanding and appreciation of the importance of the direct selling industry as an industry that seeks and desires to ensure ethical and worthy market confidence, "Ohlhausen said.
The industry has been criticized by detractors who say that more regulations of officials of the FTC are needed in order to protect consumers of pyramid schemes and advertising defective. But Ohlhausen said that sometimes the self is "the only option for certain advertising practices where government intervention is limited by the First Amendment."
Still, Ohlhausen notes some of the limitations of relying entirely on self-regulation. "The inadequacy of resources can lead to dependence on member firms and financial influence lobbying" he said, adding that she was speaking on his own behalf and not on the entire FTC.
During the holding of a round table after Ohlhausen statements, José Mariano, president of the Direct Selling Association, said that "self-regulation is preferred to government regulation because" people are then abligada to demonstrate their full commitment to the rules. "" opposite When the government tries to impose a standard of behavior occurs, "Mariano said."
Lynne Omlie, senior vice president and general counsel at the Distilled Spirits Council of the United States (DSCUS), said during the meeting how self-regulatory standards led to liquor companies to review their ads. DSCUS ads oversees liquor industry and issues public reports about whether these companies respond to concerns. While regulators may meet with criticism "freedom of expression", he said Omlie, DSCUS is able to work as an industry group as well as its own police.
About the FTC
The mission of the FTC is to prevent anticompetitive, deceptive or unfair business practices towards consumers; improve the level of information of the options available to consumers and increase the level of understanding of the competitive process by the public; and meet these objectives without imposing an undue burden on legitimate business.
The FTC is the only federal agency that has jurisdiction both in the field of consumer protection and in the field of competition in many sectors of the economy. The FTC works for a fulfillment of the vigorous and effective law; It promotes the interests of consumers sharing their expertise with federal legislatures and state legislatures and US government agencies. UU. and internationally; develops policy and research tools through hearings, workshops and conferences; and make practical educational programs prepared in plain language for consumers and businesses that interact in a global marketplace with constantly changing technologies. The FTC task is performed by the Bureau of Consumer Protection, Competition Bureau and the Bureau of Economics. This task is assisted by the Office of General Counsel and seven regional offices.
Source: The Hill
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