Multi-level Marketers
Multi-level marketers (MLMs) must
register with the Consumer Protection Section of the Louisiana Department of
Justice. Generally, a MLM distributes goods or services through independent
agents, contractors, or distributors at different levels of distribution and
may compensate participants based on sales, or the recruitment or performances
of additional participants in the marketing program.
Louisiana MLM regulations can be
found under Section 503 of Part III of Title 16 of the Louisiana Administrative
Code, which requires a MLM to notify the Consumer Protection Section of any
of the following, prior to doing business in Louisiana:
- that it
will be doing business in Louisiana;
- each
place within Louisiana where it will actually be doing business;
- the
full name and mailing and permanent address of its authorized agent for
service of process within Louisiana, which it is also required to have at
all times herein;
- that
the Consumer Protection Section of the Louisiana Department of Justice and
its representatives are authorized and invited to attend any and all of
its opportunity meetings, recruitment meetings, training sessions, or any
other meeting wherein a prospective participant or any participant is
explained the marketing system, and are authorized and invited to visit,
at any reasonable time, any and all places wherein it keeps files,
records, data, communications, or information and to inspect same.
MLMs may register by mailing the multi-level distribution registration form
along with other requested information and documents to the following address:
Louisiana Department of Justice
Consumer Protection Section
P.O. Box 94005
Baton Rouge, LA 70804-9005