Direct Sellers Update: Regulation, Law & Policy

Most direct sales companies have arbitration agreements and class action waivers in their distributor and consumer agreements these days.  Those provisions go a long way in making sure your company is protected from bet-the-business, expensive, and time-consuming class actions and other litigation.  But a recent decision out of California, Sellers et al. v. JustAnswer, LLC, 289 Cal. App. 5th 444 (2021), underscores the importance of ensuring your company’s registration process is appropriately structured, especially if your online registration processes involve click-wrap agreements.