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Smith Discusses Aspects Of Multilevel Marketing Law
REBEKAH HEARN | The Daily News
http://www.memphisdailynews.com/editorial/Article.aspx?id=43668
Firm: The Law Firm of D. Jack Smith
Basics: Smith recently celebrated the publication of his 100th nationally published legal article.
– D. Jack Smith
Tap into millions of public records, notices and articles on The Daily News.
Titled “MLM Attorney Reminisces and Gives the ‘Bare Bones’ of MLM Legality,” it appeared in the Network Marketing Business Journal-The International Trade Publication for Network and Multi Level Marketing.
Smith is an international multilevel marketing and direct selling legal specialist who has been in marketing law for 25 years.
Smith received his undergraduate degree from Vanderbilt University and his juris doctorate from Harvard Law School.
He has experience in business law, although he represents only direct selling and multilevel marketing companies. His client list spans from locales ranging from Germany to Taiwan.
Smith is a former member of the National Congressional Advisory Committee, a former member of the Tennessee House of Representatives and the former chairman of the Tennessee House Committee on Business. He serves on the board for the Multi Level Marketing Association in Irvine, Calif., is a member of the Lawyer’s Council and Government Relations Committee of the Direct Selling Association in Washington, and is a monthly columnist for The Network Marketing Business Journal, a national sales industry magazine.
Q: How did you end up practicing in direct selling and multilevel marketing areas?
A: (It was) one of those miracles or breaks everyone prays for. My number came up one day in the Rolodex of the local Bar Lawyer Referral Service. They sent me a client, who had borrowed $5,000, who wanted to start something known as a multilevel marketing company. I had never even heard the term before, as it is not taught in any law school. It all grew out of that humble beginning.
Q: Can you define multilevel marketing, particularly in regards to law?
A: One can build a product sales or business organization by making a very modest investment – usually less than $200 – and recruit friends and neighbors and others into it who can, in turn, build their own product sales groups and so on. Amway and Mary Kay cosmetics are two well-known examples of this kind of marketing. There can be superficial resemblances to some unlawful entities such as pyramid schemes, chain letters and lotteries, and these companies can overlap into highly regulated areas of the law such as securities, consumer protection and franchises. It is the attorney’s job to make certain that there is no conflict with nine of these areas of the law in all 50 states (450 statutes with subsections) and the national government, or any conflicts with the governments and subdivisions of governments in each country in which the company wants to do business.
Q: You have been a very prolific writer. What do you like best about legal writing?
A: I find it comes to me fast and easily, and it is a real pleasure to help and teach those entrepreneurs who are actually founding and building businesses and pursuing the American Dream. It has also been a lawyer’s dream to have a chance through my writings and the legal precedents I have set through litigation to help shape the development of the law itself nationally in a relatively new and pioneering way of merchandising. Multilevel marketing really began only about 60 years ago, which led to the development of whole new bodies of laws in each state, nationally and internationally. It is still not taught in law schools anywhere and one must learn it through experience and individual effort.
Q: What do you think are the most difficult aspects of practicing in direct selling law?
A: It was extremely vague and confusing in the beginning because it was so new. Most authorities I dealt with really were unfamiliar with the developing principles, case law and statutes, and often made mistakes and sued legal and innocent companies. It is much more settled, defined and understood now and consequently much easier and (smoother to practice in this area).
Q: You were the former legislative attorney for the city of Memphis and Shelby County. In what capacity did you serve the local governments in that position?
A: The city or county attorney has an awesomely broad scope of responsibility. It covers everything. The legislative attorney only has to focus on and liaison with the state Legislature. It is his responsibility to monitor introduced and proposed legislation from all sources to alert the local governments of any bills that might have an adverse effect on their operations and to find sponsors for and guide to passage bills desired by the city and county governments to aid their operations.
Q: What are your interests outside law?
A: My primary interest and love outside of the practice is history – Southern, American and English history. I am active in local, state and national historical groups and societies here and in England. One of my very favorite avocations is giving talks to all kinds of groups here in West Tennessee that are kind enough to invite me – everything from historical societies to book clubs – on the Founding Fathers and generals and early American and Southern battles and constitutional and governmental development and history.
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