On The Success Of American Direct Selling Since 1980 From The Perspective Of Legal Protection For Direct Selling Participants

Direct selling as a product of American dream has developed rapidly since 1980 s and in 2004 it has accounted for a large proportion in American economy.Therefore,American direct selling can be seen as an enormous success.In the past several years,some scholars attributed the success of American direct selling to the quality of product or technical level.However,my paper holds that legal protection for direct selling participants contributed much to the success of American direct selling.The first part will focus on the legal protection for the direct selling enterprise.The chapter mainly focuses on how the legal protection for the direct selling enterprise reflects the protection of individuals in individualism value.The second part will present the legal protection for the direct seller.The Illegal pyramid operation consists of traditional pyramid schemes and product-based pyramid schemes.Firstly,some laws restrict on traditional pyramid schemes,such as the Franchise Rule,which seeks to prevent fraud by requiring franchisors,and other business opportunity sellers,to disclose material information to purchasers who are going to purchase business opportunity as direct sellers before selling a franchise,or other business opportunity.Secondly,some laws prohibit product-based pyramid schemes,such as Anti-Pyramid Law,which restricts on initial fee and stock.The last part is about the legal protection for the consumer.The legal protection of consumers is shown in two respects: stipulating direct sellers' duties and specifying directly consumers' rights.Stipulating direct sellers' duties and obligations protects consumer's right to know and specifying consumers' rights protects their right to refund.