Direct selling companies especially those working in the MLM model must strictly adhere to all the legal and regulatory requirements of their operating countries. In the United States, mandates set by the Federal Trade Commission and the Direct Selling Association are critical to ensure problem-free operations. Non-compliant companies often find themselves in legal battles and hefty penalizations which impacts on their financial performance.

DSA follows a code of ethics and makes it important for all member companies to follow. The earning claims guidelines set by DSSRC also helps direct selling companies and its salesforce in understanding and aligning with the industry guidelines.

Data security policies such as GDPR, CCPA, HIPAA, SOX, DORA, must also be adhered to as it encapsulates the trust and security of customers. Aligning all processes and sales teams to major compliance guidelines ensure that the company is transparent and secure for customers to approach, building long term loyal customer relationships.

While manually monitoring these regulatory requirements is a tedious task, direct selling companies can employ automated compliance monitoring software (https://www.epixelmlmsoftware.com/use-cases/compliance-management) that can keep a check on the legal and regulatory policies of the company and the industry. It can also identify and notify the organization on potential threats, breaches or cyberattacks.