Direct selling

Lawrence Graham is by far the most prominent law firm advising on direct selling and network marketing law in the United Kingdom. Our experience covers not only legal regulation but also commercial matters and the day to day issues which arise for both the direct selling organisations and their distributors. We always seek to ensure that our advice is commercial and practical and is drawn from our in-depth knowledge of the business sector as well as the law.

We have represented the Direct Selling Association - the UK trade association for direct selling and network marketing companies - since soon after its formation in the United Kingdom and have advised the DSA and many direct selling businesses on legal issues relating to direct selling and network marketing for over 20 years.

We act regularly for more than 30 direct selling companies and on an ad hoc basis for many others. Most of the major direct selling companies in the UK consult us on specialist direct selling and regulatory issues and contracts and we advise a significant proportion of these companies on all their legal requirements.

We have good experience of managing expansion programs for direct selling businesses in Europe. Many international businesses, particularly those which are US-based, will establish a first European operation in the UK and we are then well-placed to prepare template documentation, based on the UK model, for use across Europe. Ee work with our tried and trusted law firms in all other European countries to provide pan-European coverage on network marketing law and all the related legal issues.

We have long advised on the marketing of so-called 'borderline' products – those foods, food supplements, herbal products and cosmetics etc which are not licensed medicinal products but are marketed as having certain qualities related to health and wellbeing. Our work relates to the regulation of the marketing of these products, including the health claims which may be made in relation to such products. We do not advise on the formulation or labelling of individual products, but have relationships with specialist consultancies which we would recommend for this purpose.

Direct selling

We can advise on:

Distributor terms and conditions
Policies and procedures
Review of legal aspects of compensation plans
Online recruitment
Product liability
Social media
International expansion programs
UK tax regime
International tax structuring
Employee/self-employed status
Agent/distributor status
Trading schemes regulations
Unfair trading regulations
Marketing of nutritional products

Direct selling

Companies which we have advised recently include: ACN, Arbonne, Avon, Body Shop, Forever Living Products, Mannatech, Mary Kay, Melaleuca, Neways, Nikken, NuSkin, Organo Gold, The Pampered Chef, Phoenix Trading, Stampin' Up!, Stella & Dot, USANA and many others.

We advised the Direct Selling Association, and a steering committee of its members made up of the major network marketing businesses in the UK, on the introduction of the present laws on direct selling in the United Kingdom and this involved high level conversations with the UK Government, politicians and regulators on behalf of the DSA and its members. We also advised the DSA on its discussions with the UK Government relating to the on-line recruitment of distributors under the Electronic Communications Act 2000 and on the development of the DSA's new Code of Business Conduct which has been formally approved by the Office of Fair Trading.