Trenton, N.J. -- The U.S. Federal Trade Commission is seeking to place regulations on "multi-level marketing" in which employees sell company products from their homes.
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Some of the biggest employers of "multi-level marketing" are household names like Avon, Tupperware and Mary Kay, The New Jersey Star-Ledger reported.
The FTC wants to require salespeople to wait seven days between pitching a business opportunity and hiring a recruit. The FTC also wants companies to disclose earnings claims, past criminal or civil actions, and cancellation and refund policies, the newspaper said.
Many salespeople who promote products are stay-at-home moms, who say they enjoy the flexibility of working from home. But some experts warn consumers about what is known as a pyramid scheme, which scams consumers.
The products sold vary widely from energy drinks to car leases to cosmetics.
Experts said about 14 million United States residents generate an estimated $30 billion a year in direct sales to customers. One trend includes shopping "parties" held in the salesperson's home, at which customers can learn about and purchase products.
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