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Multi-Level Marketing

We are among a handful of Canadian firms with expertise in the areas of direct sales, multi-level and network marketing ("MLM"). This hands-on experience extends to handling the legislative, common law and regulatory issues facing direct sellers and multi-level marketers.
MLM is a large segment of the Canadian economy, and involves the distribution and sale of a wide range of products. MLM is a franchise-related industry (and may be subject to franchise or business opportunities laws in the United States), but is exempt from regulation under the Ontario Franchise Act, and subject to regulation federally under the Canadian Competition Act.
We assist new and established MLMs in reviewing and drafting documents for the distributor, including sales kit materials, distributor agreements and policies and procedures.
We also advise on licensing and bonding, registration (including specifically any mandatory filings by non-residents), pricing and competition restrictions, advertising and promotion review, distributor relations and disputes, sales tax of nexus-related issues, independent contractor issues, (including unemployment classification and specific contractual requirements), statutory cancellation periods, labeling and packaging requirements, language requirements, negative option selling, and foreign expansion.

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