Multi-level marketing (MLM) boasts that it is a $40 billion+ industry across our country. Unfortunately, available data shows that the vast majority of this money does not go to the millions of hard working Americans trying to earn money as MLM “distributors,” but instead lines the pockets of a small fraction (less than 1%) of extremely wealthy distributors at the very top of these structures. The money also funds the Direct Selling Association (DSA) and corporate political giving that funnels millions of dollars to members of Congress to protect industry interests and avoid consumer protection safeguards.

The vast majority of consumers -- estimated at more than 95% -- end their involvement in direct selling at a net financial loss. Only a small fraction earn even part-time income, let alone the high earnings and lavish lifestyles often promoted. Even more telling, consumers who have left an MLM report that they would not rejoin that same MLM, because they don’t like the business model and they did not earn what they expected to.

Despite this terrible track record, MLM’s do not have to play by the same rules as other business opportunities. Ten years ago, the Federal Trade Commission (FTC) created a gaping loophole for MLM’s from its Business Opportunity Rule. The Rule is simple - someone selling you a business opportunity must give you basic information, like whether the business has been sued, whether you’re likely to earn what was promised, and what happens if you want to quit. But MLM’s – one of the largest business opportunity industries in the country – do not have to do this. Why? Because the DSA helped generate a letter writing campaign to the FTC, asking for special treatment – and they got it.

Now, the FTC is considering closing this loophole, and the DSA and MLMs are very worried. On September 20, the DSA is going to meet with your representatives in Congress to spread the false narrative, based on highly selective testimonials, that consumers are doing just fine and MLMs should not be regulated. In fact, some members of Congress are trying to withhold the FTC’s funding and have added harmful “policy riders” into appropriations legislation which would kill efforts to close the MLM loophole.

Sign this petition today so that we can tell members of Congress the truth:

• The loophole should be CLOSED,
• MLMs should play by the same rules as every other business opportunity, and
• The FTC should be fully funded and allowed to do its job to protect consumers.