“MLM” or “Network Marketing” is a particular form of distribution of direct sales. These forms of distribution have been in force for a very long time; from a legal point of view, there is no special legislation, but an extensive jurisprudence on the most diverse areas of law. Both the European and, in particular, German jurisprudence are generally considered restrictive. “Pyramid schemes” have to be excluded; downline structures can vary, and so on. Once a downline has been fully functional, it can be used for the distribution of various goods and services.
MLM distribution law
Multi-level-marketing Law encompasses a variety of problems from different legal point of view. This relates, inter alia, to the general civil law (GTCB law/ Contractual Law), the commercial law (in particular the Commercial Agent Law), Competition Law (medicine advertising law, cosmetic law or foodstuff law) as well as corporate and international issues.
MLM Attorneys at law
We advise and represent German companies and entrepreneurs, international companies that already have a MLM distribution in the EU and want to optimize their outcomes, as well as companies that want to be legally supported throughout their first encounter in the market.
We are here to support companies/entrepreneurs at all levels of the MLM, including partner/consultants in all essential legal area.
MLM Legal Consultation
For producers/companies, we can offer you advice and support in the following topics:
- Business creation (producers companies, distribution company);
- Controlling of the transportability of products and services;
- Preparation/examination/optimization of the remuneration system and of the marketing plans;
- Preparation/examination/optimization of consulting agreements, consultants/partners system contracts;
- Preparation/examination/optimization of GTG;
- Verification of external communications;
- Out-of-court and judicial enforcement/defense of claims;
- Debt collection.
For consultants / partners we advise / represent the following:
- Business start-ups / company creation / commercial registration;
- Preparation/examination/optimization of GTC;
- Verification of external communication
- out-of-court and judicial enforcement / defense of claims
- Debt collection.