Multi-Level Marketing

Siskinds is one of a very few firms in Canada with experience in the area of direct sales, multi-level and network marketing (“MLM”). MLM is a large segment of the Canadian economy, and involves the distribution and sale of a wide range of products. MLM is a franchise-related industry (and may be subject to franchise or business opportunities laws in the United States), but is exempt from regulation under the Ontario Franchise Act, and subject to regulation federally under the Canadian Competition Act. Our group has experience with the legislative, common law and regulatory issues facing direct sellers and multi-level marketers.

We assist new and established MLMs in reviewing and writing documentation for the distributor, including sales kit materials, distributor agreements, and policies and procedures. Siskinds advises MLM companies on a wide range of legal matters, including licensing and bonding, registration (including specifically any mandatory filings by non-residents), pricing and competition restrictions, advertising and promotion review, distributor relations and disputes, sales tax or nexus-related issues, independent contractor issues, including unemployment classification, specific contractual requirements, statutory cancellation periods, labelling and packaging requirements, language requirements, trademarks, negative option selling, foreign expansion and other important issues.

Moving Forward. We look forward to working together with you to start, expand or re-structure your system, or to solve whatever problem or seize whatever opportunity you're dealing with, anywhere. Contact Peter Dillon or Taimi Williamson at 800-816-9596 (or 519-672-2121 outside of North America) or electronically at peter.dillon@siskinds.com or taimi.williamson@siskinds.com.