2014 Global Regulatory Conference

Wednesday, October 15

7:30 a.m. - 5:30 p.m.
Registration Open

8:00 a.m. - 8:45 a.m.

8:45 a.m. - 9:45 a.m.
Welcome and General Session I: Priorities of the Federal Trade Commission

The Federal Trade Commission (FTC) regulates business practices to ensure they are ethical and fair to consumers. As such, this regulatory body can impact the direct sales channel tremendously with rulings and other actions. Start your Global Regulatory Conference experience with an address from the FTC and get an inside look at their take on the issues that mean the most to our sales channel—and your day-to-day business activities.
Joseph N. Mariano, President, Direct Selling Association
Monica Vaca, Assistant Director, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission


9:45 a.m. - 10:30 a.m.
General Session II: Inside the Securities & Exchange Commission

In contrast to the FTC’s focus on the consumer, the Securities & Exchange Commission (SEC) protects investors and maintains an efficient marketplace. As such, their regulatory actions can have just as much of an impact on direct selling, especially as it pertains to prosecuting pyramid schemes. Our speaker will address some of the SEC’s recent actions and give you particular insights into its approach to our sales channel.
Stephen L. Cohen, Associate Director in SEC Division of Enforcement, United States Securities and Exchange Commission


10:40 a.m. - 11:40 a.m.
Breakout Sessions

Legal/Government Track:
Policing Online Sales

Keeping tabs on your sellers’ online habits and activities is no easy task, but some forward-thinking companies have crafted best practices you may find helpful. The executives leading this panel will share with you the challenges they’ve experienced in policing the field and provide you with some proven tactics to overcome these hurdles in the future.
Karen O'Neill, Manager, Business Conduct & Rules, Amway
Gary VanderVen, Director, Global Business Conduct & Rules, Amway

International Track:
Doing Business in Canada

Get a look at Canada’s $2 billion industry during this workshop and see why it provides an ideal market to expand your business internationally. Far from being “the 51st state,” Canadian operations require close examination and this workshop will help you focus on the important considerations to keep in mind when contemplating northern expansion. Our panelists will cover such topics as:

  • An overview of the current Canadian direct selling landscape
  • What you need to know about selling nutritional supplements, cosmetics, food and drugs in Canada
  • A Canadian legal review

Eamonn Flaherty, Partner, Miller Thomson LLP
Laura Gomez, Gowling LaFleur Henderson
Wendy Hulton, Partner, Dickinson Wright LLP
Rob Kreklewetz, Partner, Millar Kreklewetz LLP
Ken Mulhall, President, Direct Sellers Association of Canada

Tax Track:
The Foreign Accounts Tax Compliance Act

The Foreign Accounts Tax Compliance Act (FATCA) should be on the radar screen for every direct selling company. This presentation will begin with a background on the legislation and how it is being implemented globally, followed by a summary of how the FATCA rules interact with Section 1441/non-resident alien withholding rules affecting direct selling organizations paying distributors internationally. The presentation will also cover FATCA issues affecting those companies with business entities in foreign countries, and provide some suggestions for multinationals to prepare for FATCA due diligence requests from their foreign financial institutions.
Jonathan Kutner, General Counsel, hyperWALLET Systems Inc.

11:50 a.m. - 12:50 p.m.
Lunch & Briefing on Independent Contractor Status

Enjoy a networking lunch as you sit at topic-specific tables and discuss with other participants the specific challenges your company is facing related to a variety of subjects. Then, listen to our featured speaker as he addresses the cornerstone of direct selling’s success: independent contractor status. One of the primary tenets that keeps direct selling viable in the marketplace, independent contractor status was established in the 1940s and codified in the US Tax Code in 1983. You’ll learn during this briefing about actions being taken every day to maintain this status across federal regulatory bodies—thus enabling your company to stay in business.
Russ Hollrah, Coalition to Promote Independent Entrepreneurs
Joseph N. Mariano, President, Direct Selling Association

1:00 p.m. - 2:00 p.m.
General Session III: Prosecution of Pyramid Schemes

The recent BurnLounge decision handed down by the Ninth Circuit Court of Appeals was historic as the court affirmed long-standing criteria of what constitutes a pyramid scheme. So what does this mean for your company? This panel of experts will delve into this very subject this fall and look at this case from legal, economic and regulatory perspectives to answer that very question. While the elements of a pyramid scheme can be simplified, don't be fooled: legally defining them is complicated. This panel will break it all out for you and help you understand the variables involved.
Joseph N. Mariano, President, Direct Selling Association
Corey Roush, Hogan Lovells US LLP
Dr. Chetan Sanghvi, Partner, NERA Economic Consulting

2:00 p.m. - 3:00 p.m.
General Session IV: General Counsel Roundtable

General Counsels sit at the center of corporate strategy. This panel of top direct selling executives will discuss how direct selling companies best manage legal, tax, international and management challenges. They’ll also take a special look at the BurnLounge decision and reflect on how that impacts their companies and the sales channel as a whole.
Mark Friedman, Executive Vice President, Herbalife
Jason Groves, General Counsel, Take Shape for Life, Inc. - Medifast
Michelle Leetham, General Counsel, Rodan + Fields
Allison Levy, Vice President & Chief Legal Officer, AdvoCare International, LP
Frank Messana, Vice President & General Counsel, ACN, Inc.
Keri Norris, General Counsel, LegalShield

3:10 p.m. - 4:10 p.m.
Breakout Sessions

Legal/Government Track:
To Shred or Not To Shred?

Far from a simple “whoops!”, spoliation—intentionally or negligently altering evidence relevant to a legal proceeding—can have substantial consequences. Our expert will address this issue and help you contemplate best practices so you never need to fear encountering this challenge.
Brent Kugler, Partner, Scheef & Stone

International Track:
Current Issues in Latin America

As your company looks toward international expansion to continue its growth and offer its products around the world, are you looking closer to home for some options? As you consider those countries south of the border, what variables should you take into account? Our panelists will lead a discussion that walks you through the many decision points that may arise. Some topics you'll explore will include:

  • The many legal, tax and regulatory hurdles you may need to clear to expand into this region
  • The product lines that will raise the most, and least, red flags
  • The role organic expansion may play in your decisions

Adriana Bueno Buitrago, Legal Manager, Yanbal International
Francisco Gaxiola, Partner, Turanzas, Bravo & Ambrosi
Jeff Reigle, President & CEO, Regal Ware, Inc.

Tax Track:
Your Distributors and the IRS—Changing our Industry Image
Our presenter will address the ongoing issues distributors have in the field when being audited by IRS. We'll examine what DSA and others are doing to counter those issues, as well as what we as an industry can do to protect distributors and bolster our industry's image in the eyes of the IRS.
Joe DePetris, One Source Tax Management

4:20 p.m. - 5:20 p.m.
Breakout Sessions

International Track:
Expanding into China

This economic giant has proven to be a challenging market for many companies, including issues from import barriers to tax issues, China provides a number of legal and regulatory hurdles for many companies, including direct sellers. Our speaker will discuss the roadblocks that your companies may encountered. Ruben Duran, Senior Manager, China, U.S. Chamber of Commerce
Michael Lunceford, Senior Vice President, Government Relations, Mary Kay Inc.

Tax Track:
State Tax Overview

This presentation will provide an overview of state taxation including income and sales/use tax. The fundamental principles associated with these taxes will be presented, as well as their application within direct selling.
Jeremy Richmond, Tax Consultant, Professional Tax Services

Legal/Government Relations Track:
Enforcing the Unenforceable? New Strategies in Digital Compliance

The Internet can be a virtual playground for sales and marketing teams, or, for your compliance team, a virtual minefield, full of traps, hidden threats and a variety of unseen causes for alarm. Our panelists will discuss with you best practices to monitor, identify and quickly address online compliance issues—from distributors circumventing company policy to spreading false statements and bad press and beyond. You'll also pick up some tips for how to educate, train and encourage your field to protect their businesses and yours! Just a few take-aways will include:

  • Gaining the techniques you can use now to reduce your company's exposure to trouble
  • Ways to encourage your field to comply with your policies and protect your brand
  • Approaches to shifting from manual, low-skill monitoring to higher-value strategic monitoring, policy development and field communications

Jonathan Gilliam, President, Momentum Factor
Seth Hopson, General Counsel, North American Power

5:30 p.m. - 6:00 p.m.
General Session: Election 2014—A Forecast

Mid-term elections never fail to offer some surprises and the 2014 election cycle is sure to continue this trend. BiPAC, an organization created to help businesses play a more active role in public policy, will join us to provide you with a bipartisan look at the key races for November 2014 and an outlook on the post-election landscape.
Bo Harmon, Senior Vice President, Political Affairs, BiPAC

6:00 p.m. - 7:00 p.m.
Networking Reception

7:00 p.m.
Dinner On Your Own




Thursday, October 16


7:30 a.m. - Noon
Registration Open

8:00 a.m. - 8:45 a.m.

8:45 a.m. - 10:00 a.m.
General Session VI: A View from the Council of Better Business Bureaus

The Council of Better Business Bureaus (CBBB)—the hub for BBBs in the U.S. and Canada—charges itself with fostering honest and responsive relationships between businesses and consumers. Direct selling companies have forged partnerships with the CBBB over the years to better encourage an understanding of the sales model and differentiate legitimate direct sellers from pyramid schemes. Hear from a CBBB representative about this organization’s perspective on consumer complaints surrounding pyramid schemes, DSA’s self-regulatory history and more.
Rod Davis, Council of Better Business Bureaus

10:10 a.m. - 11:00 a.m.
Breakout Sessions

Legal/Government Track:
Roundtable with Leading Legal Minds

A panel of outside legal minds will discuss today’s leading legal challenges, from BurnLounge to Internet challenges and everything in between. This workshop will provide you with an excellent opportunity to gain industry-specific legal guidance, no fees attached!
Jeff Babener, Principal Attorney, Babener and Associates/SourceNet Group
Jane Ferguson, Partner, Gardere, Wynne, Sewell, L.L.P.
Jeff Hunt, Attorney, Parr Brown Gee & Loveless
Richard Waak, Principal Attorney, Nehra & Waak

International Track:
Understanding European Opportunities

Many companies are successfully expanding into and throughout Europe. What are they learning on the ground and what challenges are they facing? Find out from our expert panelists and pick up some tactics for navigating the legal, regulatory, financial and cultural challenges of this diverse market.
Maurits Bruggink, Executive Director, SELDIA
Jonathan Riley, Partner, Lawrence Graham
Richard Strulson, EVP, General Counsel and Chief Compliance Officer, Nature's Sunshine Products, Inc.

Tax Track:
Creating a Comprehensive Trade Compliance Program

Our panelist will delve into the details of how to create a committee/team comprised of legal, tax and supply chain personnel that would each have areas of responsibility to ensure compliance in imports and exports. Specifics will cover internal audits, improving communication with buyers and product development, personnel, record retention and more.
Tim Larsen, Tax Director, Scentsy, Inc.

11:10 a.m. - Noon
General Session VII: Working with the Internal Revenue Service

Hear from a senior IRS official who will provide valuable insights into the most crucial aspects of small business and self-employment. Your company and distributors can take advantage of the Small Business/Self-Employed Division’s (SBSE) services year round to understand the tax implications behind important business decisions.

  • Hear from a professional staffer from the U.S. Senate Finance Committee about what is currently being proposed and likely to be proposed next year regarding taxes, including “marketplace fairness”, “internet tax freedom” and other issues where there may be a state/local tax nexus.

Barbara Fiebich, Director, Operations Support, IRS Small Business/Self-Employed Examination Division

Nick Wyatt, Professional Staff Member, U.S. Senate Finance Committee

Boxed Lunches To Go