Thomas Ritter is an associate attorney at Thompson Burton. His practice area focuses primarily on business transactions and direct selling law. As MLM attorney has published an awesome article about the “Pay to Play” dilemma in MLM or Network Marketing.
The short version: Companies cannot require their participants to buy inventory as a condition to participation…..
Thomas Ritter:
“When I sense a gap in the industry’s understanding on an issue, I see it as an opportunity to learn more and write content that sets the record straight.
I’ve been fielding a lot of questions lately on the subject of whether a company can require monthly product purchases as a condition for pay plan qualification. When I give the answer, I’m sometimes met with surprise.
They’ll often say, “They’re doing it over here and over there…..are you telling