Max International Lawsuits - What Do They Mean For Mlm?

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Max International jumped into the condition products pool with a big splash.

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The business is embroiled in litigation that may have far reaching effects on the multi-level marketing (Mlm) industry. Let's take a look at the business and Max International lawsuits to see what the hereafter may hold.

Background: Founded in 2007, Max International began by producing and marketing MaxGl, a patented supplement premised on antioxidant condition benefits.

Additional products have been added to the line, together with MaxWlx for weight loss and Max N-Fuse to build immune defenses.

Opportunity /Compensation: The Max International business opportunity offers the typical appeals for the independent entrepreneur. The agenda is designed to repaymen newcomers speedily but,like all Mlms, requires building a downline for higher commissions and residual income.

The plan has 7 levels with matching bonuses, team commissions, car and trip bonuses. Max is unusual as it offers consultants business guarnatee and affordable condition and dental insurance.

Success requires tapping your warm market of friends, house and co-workers. If you have enthusiasm for the stock lines, sharing could come plainly for you.

Max International Lawsuits:

(1) On February 17, 2010, Tripharma Llc ("Tripharma") sued Max International, Llc alleging false marketing and labeling of MaxWlx. It also claimed that Max violated a contribute business agreement with Tripharma. Max responded that the suit lacks merit.

This type of lawsuit is unfortunate but not ground breaking for Mlm. It falls within the norm of precious business litigation.

More regarding is the 2nd lawsuit:

(2) On January 7, 2010, a U.S. District Court Judge entered an order enjoining Max from recruiting any previous Melaleuca executives who are in the downlines of any current Max associate.

Max believes that Melaleuca is using lawsuit to bar its previous counselor from selecting for whom they wish to work.

There is no demand that relaxation of choice, especially for work, is the American way.

Non-competition agreements, limit a person's potential to work within the same field, in a singular geographic area, upon termination of a current employment or business relationship.

Similar lawsuits abound for other Mlm companies. Most have located out of court which is why there are no clear "bright line" guidelines today in the industry.

As a result, numerous issues remain unanswered:

Is it right that if an upper tier exec leaves that their whole downline should follow? Should a business be able to sign a legally enforceable non-competition business agreement with an upper level counselor or any counselor for that matter? What definite parameters are needed for such an business agreement to be enforceable--reasonable time limits, geographic area? Will the status of employee versus independent contractor be the determining factor of either non-compete agreements are enforceable? Are all Mlm marketers independent contractors?

Some market experts predict that a counselor will be able to freely leave and take their personal recruits with them, but not the full downline. What this means in actual custom is unknown. Max International lawsuits and their results should make it an involving year for Mlm.

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