Law Offices of D. Jack Smith
D Jack Smith - Multi Level Marketing Attorney
4620 Shady Grove Road
Memphis, TN 38117
ph: 901-292-5225
fax: 901-763-2976
djslawfi
Services
Legal Services of D. Jack Smith
In addition to applying more than twenty years of international MLM legal experience in relating your company to the fundamental laws, regulations and principles, there are a number of other areas our representation of your company will impact:
- Compliance. Ensuring that the Company’s program and literature are in full compliance, in every state, with applicable marketing laws and with Postal Regulations insofar as possible given the current state of development of MLM law.
- Sales Tax. A discussion of the Company’s options and the benefits and problems with each option chosen, assisting the Company to choose the proper option.
- Corporate Registration and Taxes. To design the program in such a way that the corporation is never required to license as a business or foreign corporation in any state other than its home state nor obligated to pay any taxes other than sales taxes where appropriate, in any other state than in its home state.
- Product and Services Warranty. Where necessary preparation of an appropriate warranty and instructions for its use I the documents and labeling, so as to limit the company’s liability for defective products or services to refund or replacement, without damages liability.
- Data Processing. Review of the Company’s data processing requirements and recommendations as to in-house or outside computer services, and recommendations of those computer services competent to handle the Company’s program.
- Product Pricing. Review of the Company’s pricing in terms of the actual costs. There are guidelines here, which generally need to be followed. Quite often we find that products and services, which cannot meet certain guidelines, can be combined in units with other products and the unit becomes the product and meets the guidelines.
- Commissions. Review of the commission stricture and where necessary recommendation of appropriate consultants and feasibility experts to ensure the commission structure will function as desired.
- Retail Sales. Review of appropriate retail sales provisions dealing with products, sales tax issues and three-day cancellation rights held by consumers.
- Distributor Order Form. Review of these forms to ensure that they contain special language in order to comply with state and federal regulations.
- Salesperson Agreement. Review and placement in the Distributor Agreement of the necessary statements and agreements terms to comply with all state and federal requirements. Some states have specific requirements, which can and should be blended into the Agreement so that it is usable and lawful in every state.
- Marketing Brochures. Review and assistance in preparing brochures so that such contain no deceptive practices or misrepresentations, and accurately describe the program as lawful under all state laws.
- Literature Review. A review of all fliers, letters, audio and video tapes, etc., to be sure that these do not contain deceptive practices and integrate property with the other company literature.
- State Registrations. Several U.S. states require MLM registration. (We believe it is in our clients’ best interest to “courtesy” file in every single consumer protection department in this country. That way they can call me and talk rather than file a CIVIL DEMAND FOR INFORMATION which may work its way into the National Attorney’s Generals’ newsletter and may trigger some more filings just out of curiosity from other states.) We supply forms and fill them out and then we review and submit the same with our cover letter legal opinion. This is not an acceptance or approval format except in one state, but rather a notification format, which is absolutely by law. (Maryland)
- Attorney General Mailing. My experience indicates that mailing a literature packet to each Attorney General with my cover letter assists in avoiding problems, cease and desist orders, etc., since they know an attorney to speak with and have a full program for analysis, not just what somebody has reported to them. Accordingly, an important feature of our services is an initial contact with every state forwarding your materials and an introductory legal opinion cover letter from me.
- Buying Club Law. Review of the program to be sure that Buying Club laws do not apply. These require registration and bonding in twelve states and if they do apply, determining which states do have Buying Club Law coverage of your particular program. If Buying Club registrations are required, we prepare them here and submit them for the Company (at additional fees to be agreed).
- Business Opportunity Statutes. Twenty seven states have “business opportunity” statues which require separate and distinct registrations, bonds and that disclosure instruments be furnished to each prospective salesperson where a business opportunity is sold for more that threshold amount – (customarily $200 - $500 on an annualized basis depending on the state) unless an exemption from the law is found. Our services include exemption advice in each state and where and if necessary perfect in the registrations (at additional charges). Exemptions in the statutes can be found for nearly all multi level marketing companies.
Our fee for the entire package of services outlined above (except for Buyer’s Club and Business Opportunity registrations) is a flat package fee payable in two installments.
Copyright 2009 D Jack Smith - Multi Level Marketing Attorney. All rights reserved.
D Jack Smith - Multi Level Marketing Attorney
4620 Shady Grove Road
Memphis, TN 38117
ph: 901-292-5225
fax: 901-763-2976
djslawfi
