Misplaced Pages

#10989

33-509: The Direct Selling Association ( DSA ) is a trade association in the United States that represents direct selling companies, primarily those that use multi-level marketing compensation plans. On behalf of its members' companies, the DSA engages in public relations and lobbying efforts against regulation of the multi-level marketing industry, and it funds political candidates through

66-462: A national lobbying presence in Washington, D.C. In their first two decades, PIRGs worked on a variety of issues: PIRGs on college campuses have historically been funded through the use of automatic billing with a portion of student activity fees in the form of a labor checkoff or in the form of automatically enrolled dues to the association. Students may elect at some institutions to have

99-526: A political action committee . The American DSA, headquartered in Washington, D.C., is the national trade association of a group of firms that manufacture and distribute goods and services sold directly to consumers typically through social selling that includes a compensation model called multi-level marketing. Founded in Binghamton, New York in 1910 as a trade group for door-to-door salesmen,

132-506: A social market economy , the role of trade associations is often taken by employers' organizations , which also take a role in social dialogue . One of the primary purposes of trade groups, particularly in the United States, is to attempt to influence public policy in a direction favorable to the group's members. It can take the form of contributions to the campaigns of political candidates and parties through political action committees (PACs); contributions to "issue" campaigns not tied to

165-472: A ballot initiative at the University of Oregon to double their student automatic billing of dues at the expense of other student activities. As of 2024, the U.S PIRG Education Fund is rated a four-star charity by Charity Navigator , with an overall score of 92%. Charity Navigator defines a four-star review, as "Exceeds or meets best practices and industry standards across almost all areas. Likely to be

198-583: A candidate or party; and lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of regulatory bodies . In the United States, direct contributions by PACs to candidates are required to be disclosed to the Federal Election Commission or state and local election overseers; are considered public information; and have registration requirements for lobbyists (FEC: Lobbyist). Even so, it can sometimes be difficult to trace

231-665: A highly effective charity ." U.S. PIRG's consumer protection work includes financial and product safety reforms. U.S. PIRG lobbied for the creation of the Consumer Financial Protection Bureau , an independent U.S. government agency which was founded as a result of the Dodd–Frank Wall Street Reform and Consumer Protection Act after the Great Recession and the financial crisis of 2007–2008 . U.S. PIRG helped win passage of

264-904: A market. In September 2007, the German trade association for Fachverband Verbindungs- und Befestigungstechnik (VBT) and five fastener companies were fined 303 million euros by the European Commission for operating cartels in the markets for fasteners and attaching machines in Europe and worldwide. In one of the cartels, the YKK Group , Coats plc , the Prym group, the Scovill group, A. Raymond, and Berning & Söhne "agreed [...] on coordinated price increases in annual 'price rounds' with respect to 'other fasteners' and their attaching machines, in

297-615: A number of legal challenges. In 2014, students at Macalester College in Minnesota voted to end their relationship with MPIRG due to the group's revenue structure, which relied on MPIRG automatically receiving a cut of student activity fees. The Fund For the Public Interest has been subject to lawsuits and accusations of unfair and exploitative labor practices, and it has resisted unionization efforts by its canvassers. In 2016, U.S. PIRG joined conservative groups in opposing

330-449: A robust challenge process that also includes the opportunity for a company to appeal a decision. As of 2011, the DSA has sister organizations in the UK (with over 40 member companies), Australia (nearly 70 member companies), and Israel (7 member companies), The DSA serves as a public relations and lobbying group acting on behalf of its member companies. The DSA played a role in petitioning

363-500: A specific corporate product, such as a specific brand of cheese or toilet paper, industry trade groups advertisements generally are targeted to promote the views of an entire industry. These ads mention only the industry's products as a whole, painting them in a positive light in order to have the public form positive associations with that industry and its products. For example, in the US the advertising campaign "Beef. It's what's for dinner"

SECTION 10

#1732791536011

396-519: Is often an important reason why companies join a trade association in the first place. Examples of larger trade associations that publish a comprehensive range of media include European Wind Energy Association (EWEA), Association of British Travel Agents (ABTA) and the Confederation of British Industry (CBI). Industry trade groups sometimes produce advertisements, just as normal corporations do. However, whereas typical advertisements are for

429-847: Is used by the National Cattlemen's Beef Association to promote a positive image of beef in the public consciousness. These are adverts targeted at specific issues. For example, in the US in the early 2000s the Motion Picture Association of America (MPAA) began running advertisements before films that advocate against movie piracy over the Internet. Trade associations have faced frequent criticism due to allegations that they operate not as profit-making organizations, but rather as fronts for cartels involved in anti-competitive practices . Critics contend that these associations engage in activities such as price-fixing ,

462-533: The Credit CARD Act of 2009 , protecting consumers from certain predatory practices by credit card companies. Product safety work includes warning consumers about potentially unsafe products in the marketplace, such as recalled baby products and food. U.S. PIRG has called on major restaurant chains including McDonald's and KFC to end the use of meat raised with antibiotics, a practice that contributes to antibiotic-resistant bacteria in people. During

495-538: The Federal Trade Commission (FTC) to exempt multi-level marketing companies from consumer protection regulations outlined in the FTC's 2006 proposed Business Opportunity Rule, encouraging people to write 17,000 form letters complaining about the rule from 2006 to 2008. The law was passed in 2012, with most multi-level marketing companies considered exempt. The DSA supported and allegedly drafted much of

528-601: The Illiana Expressway in Illinois. U.S. PIRG actively lobbied for passage of the College Cost Reduction and Access Act in 2007, which reduced interest rates on student loans and increased funding for Pell Grants . It supported the expansion of open educational resources on campus and of campus food banks . Some PIRGs are members of a larger network of non-profit organizations called

561-683: The National Consumers League , and the United States Public Interest Research Group (US PIRG), as well as Truth in Advertising (TINA.org) in its original incarnation. The DSA has said that pyramid schemes which disguise themselves as direct selling companies have caused confusion in the industry. In 2013, Tupperware left the DSA citing industry changes and concerns over pyramid schemes. In 2014, Avon (a founding member) left

594-527: The Obama Administration 's rules that expanded worker overtime pay, which resulted in criticism against the organization in the popular press. In 2022, the PIRG campus affiliate was shut down at the University of Connecticut after an effort by the local chapter to separate itself from the state and national organization failed to meet legal requirements. In 2023, Student PIRGs successfully used

627-490: The DSA citing that its bylaws were inadequate in protecting consumers from fraud. News reports have connected Avon's quitting to pyramid scheme allegations against DSA member Herbalife , which was under investigation by the FTC at the time, and has now been ordered agreed to pay two hundred million dollars in a settlement. The DSA made a statement that they would look at Avon's concerns. Trade association In countries with

660-839: The DSA's membership had grown to include nearly 130 companies, more than 90% of which were multi-level marketing companies. The DSA belongs to the National Retail Federation and its member companies pledge to abide by the DSA code of ethics . In 2019, DSA helped launch the BBB National Programs Direct Selling Self Regulatory Council. The Direct Selling Self-Regulatory Council (DSSRC) provides impartial monitoring, enforcement, and dispute resolution regarding product claims or income representations (including lifestyle claims) disseminated by direct selling companies and their sales force members. This program provides

693-619: The Public Interest Network. While part of the same organization and often staffed by the same individuals, these affiliates are often presented in publications to imply they are different. In the past, they have also helped to launch a number of other independent public interest non-profits, including: Twenty-five U.S. states have a statewide PIRG that is directly affiliated with the Public Interest Network/U.S. PIRG. Other state PIRGs that are not part of

SECTION 20

#1732791536011

726-706: The Treasury Department, the Judiciary Department, the Small Business Administration, the Securities and Exchange Commission, the FTC, or any other agencies from using any monies to take enforcement actions against pyramid operations for the fiscal year. The Act would blur the lines between legitimate MLM activity and pyramid schemes established under the original 1979 FTC case by deeming sales made to people inside

759-712: The United States, outlined the potentially anti-competitive nature of some trade association activity in a speech to the American Bar Association in Washington, DC , in March 2005 called "The Good, the Bad and the Ugly: Trade Associations and Antitrust ". For instance, he said that under the guise of "standard setting", trade associations representing the established players in an industry can set rules that make it harder for new companies to enter

792-696: The association was originally called the Agents Credit Association. It was renamed the National Association of Agency Companies (NAAC) in 1914, and briefly renamed the National Association of Agency and Mail Order Companies in 1917, before returning to the NAAC in 1920. It became the Direct Selling Association in 1968. As of 1970, less than 5% of the DSA's members were multi-level marketing companies. By 2018,

825-614: The company as sales to an “ultimate user,” thus erasing the key distinction made in the ruling between sales to actual consumers of a product and sales made to members of the MLM network that are used for recruitment of additional members or to qualify for commissions. The amendment was opposed by a coalition of consumer interest groups including Consumer Action , the Consumer Federation of America , Consumers Union (the publisher of Consumer Reports magazine), Consumer Watchdog ,

858-531: The coronavirus pandemic, U.S. PIRG organized medical experts to speak about the U.S.'s response to the COVID-19 pandemic . The group of 150 sent a letter to political leaders urging them to shut down the country and start over with strategies to contain the surging coronavirus pandemic. U.S. PIRG and individual state PIRGs have taken positions against highway expansion or new construction projects as wastefully expensive and unneeded, helping to stop projects such as

891-593: The country set up the first PIRG chapters, then became the director of the New York Public Interest Research Group in 1973. The Minnesota Public Interest Research Group , founded in 1971, was the first state PIRG to incorporate. It was followed by Oregon (OSPIRG) and Massachusetts ( MASSPIRG ). By the late 1990s, there were PIRGs in 22 states with chapters on more than 100 college campuses. U.S. PIRG reported 1 million members by 2000. The state PIRGs created U.S. PIRG in 1984 to have

924-401: The creation and maintenance of barriers to entry in the industry, and other subtle self-serving actions that are detrimental to the public interest. These criticisms raise concerns about the true nature and intentions of trade associations, questioning their commitment to fair competition and the welfare of the broader economy. Jon Leibowitz , a commissioner at the Federal Trade Commission in

957-406: The early 1970s on U.S. college campuses. The PIRG model was proposed in the book Action for a Change by Ralph Nader and Donald Ross , in which they encourage students on campuses across a state to pool their resources to hire full-time professional lobbyists and researchers to lobby for the passage of legislation which addresses social topics of interest to students. Ross helped students across

990-627: The fees refunded to them or opt-out, although many students are unaware that this is the case. At some institutions, opting out of the fee only lasts one academic term, requiring students who do not wish to be members and pay dues to have to opt-out. In 1982, the PIRGs established the Fund for the Public Interest (commonly referred to as "the Fund") as its fundraising and canvassing arm. The student fee system of PIRG funding has been met with controversy and with

1023-538: The framework of work circles organised by VBT". Public Interest Research Group Public Interest Research Groups ( PIRGs ) are a federation of U.S. and Canadian non-profit organizations that employ grassroots organizing and direct advocacy on issues such as consumer protection , public health and transportation. The PIRGs are closely affiliated with the Fund for the Public Interest , which conducts fundraising and canvassing on their behalf. The PIRGs emerged in

Direct Selling Association - Misplaced Pages Continue

1056-452: The funding for issue and non-electoral campaigns. In Slovenia , the government 's approach to consulting business associations has been noted by the European Commission as a good practice example. Almost all trade associations are heavily involved in publishing activities in print and online. The main media published by trade associations are as follows: The opportunity to be promoted in such media (whether by editorial or advertising)

1089-542: The language of the "Anti-Pyramid Promotional Scheme Act" introduced by US Representative Marsha Blackburn , and an amendment to the US House of Representatives' omnibus Financial Services and General Government Appropriations bill for fiscal year 2018 by US Representative John Moolenaar that would have limited the ability of the FTC and other agencies to classify companies as pyramid schemes and to investigate whether MLMs are pyramid schemes. The amendment would have disbarred

#10989