Why Short Sellers Want to Crash the Tupperware Party - New York Times
New York Times article that discusses the anticipated effect of the proposed FTC regulations on MLM's.
"Short sellers" make money by betting that stock values will go down for specified companies. These short sellers predict that stocks of publicly traded network marketing companies will plummet when (if) the proposed regulations go into effect.
The article notes that it will be one or two years before any new regulations would take effect and that they will be modified from the original proposal.
Currently, distributors would have to disclose how many distributors make enough money to cover the cost of their starter package and supply a list of their last 10 customers.
The article highlights Pre-Paid Legal but mentions several other leading network marketing companies.
This article caused me to wonder how the proposed FTC rules would work in practice.
For example, as an employee of a large health care organization, I have the option to select Pre-Paid Legal as an employee benefit. Would my employer have to provide me with the names recent PPL customers before I could enroll for this benefit?
The New York Times article mentioned several companies but not Pampered Chef. I wonder how Berkshire Hathaway executives, including Warren Buffet, feel about these proposed regulations?
"Short sellers" make money by betting that stock values will go down for specified companies. These short sellers predict that stocks of publicly traded network marketing companies will plummet when (if) the proposed regulations go into effect.
The article notes that it will be one or two years before any new regulations would take effect and that they will be modified from the original proposal.
Currently, distributors would have to disclose how many distributors make enough money to cover the cost of their starter package and supply a list of their last 10 customers.
The article highlights Pre-Paid Legal but mentions several other leading network marketing companies.
This article caused me to wonder how the proposed FTC rules would work in practice.
For example, as an employee of a large health care organization, I have the option to select Pre-Paid Legal as an employee benefit. Would my employer have to provide me with the names recent PPL customers before I could enroll for this benefit?
The New York Times article mentioned several companies but not Pampered Chef. I wonder how Berkshire Hathaway executives, including Warren Buffet, feel about these proposed regulations?
posted by Mark Worthen, Psy.D. at Monday, November 13, 2006
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