Getting Out Our Collective Umbrellas for the Regulatory Storm Cloud

By Brian Bennett, Senior Vice President, Government Affairs & Policy, DSA

Weather is fickle. When we know the storm is coming, we have time to accommodate our plans to minimize the disruption to our lives and schedule. Other times, an unexpected dark cloud suddenly appears, ruining the day we’ve planned outside while we’re caught without an umbrella.

Advocacy and government affairs are no different. Issues that adversely affect the direct selling business model can be built throughout the various levels of government for months and years. However, if we’re not prepared for a sudden regulatory storm, we may have little chance to grab our umbrella.

Most executives who are involved in advocacy are aware of the regulatory risks facing the direct selling business. Our collective voice on behalf of direct selling needs to be heard as we advocate for a range of issues that include consumer protection and the independent contractor status of our salesforce. If we don’t step up, our legitimate businesses will suffer.

DSA’s raison d’être is to protect and promote direct selling. We engage with federal, state, and local policymakers to ensure that they understand the impact onerous regulations will have on the direct selling business. We advocate for consistency, clarity, and reasonableness of law and regulation every day. To ensure members fully understand the impact of DSA’s work, we consistently update them as regulatory events unfold, and we summarize our advocacy activities in DSA’s annual reports that can be found on the DSA website.

Like the saying “all politics is local,“ all advocacy is local. Policymakers and regulators engage with us much more readily when we represent your companies and the many small businesses in their hometowns, cities, and states. Working and partnering with our member companies is vital to our regulatory work. We may speak with one voice, but we need the voices of millions to help buttress these efforts. Over the years, DSA has found success in effectuating a more positive regulatory environment by focusing on the personal experiences and connections that policymakers and regulators have with our business. During a virtual briefing with the Congressional Direct Selling Caucus, the caucus co-chairs reiterated their support for direct selling.

“I had a direct selling business in college—and learned a lot through that experience—which has led to my success as a member of Congress. The flexibility the business provides for families in my district, especially those in the military, is a vital aspect,” said Rep. Richard Hudson (R-NC).

“I value the work that direct sellers do as a huge part of the economy in the Dallas-Fort Worth Metroplex. It is important that we keep that success going and share with others what direct sellers do in their communities,” said Rep. Marc Veasey (D-TX).

DSA also works to bring these connections directly to members of Congress. DSA hosted five Women’s Entrepreneurship Roundtables with bipartisan members of Congress in just the first quarter of 2022. These events highlight the impact that direct selling has in their districts and for their constituents. The

Most executives who are involved in advocacy are aware of the regulatory risks facing the direct selling business. Our collective voice on behalf of direct selling needs to be heard as we advocate for a range of issues that include consumer protection and the independent contractor status of our salesforce. If we don’t step up, our legitimate businesses will suffer.

Association has hosted a dozen roundtables in the last three years.

Rep. Markwayne Mullin (R-OK), who participated in one of the roundtables, said this about the experience: “Direct selling has been a part of my life since childhood. I was impressed hearing from these women in my district on how the business has adapted over many years to be successful, and I look forward to supporting that evolution as a member of Congress.”

In addition to its Congressional work, DSA has been advocating for our policy priorities on the state level for many years. And now, thanks to an expansion in technology and a shift in mindset over the last two years, it’s easier than ever to be involved in our efforts. You can contribute right from your office by sending letters and participating in virtual meetings with state policymakers. And there’s always the traditional option of traveling to state capitols across the country—still the most ideal and personable way to present the messages of your company and the Association.

Legislators are not the only elected officials or regulators at the state level that can impact direct selling. State attorney generals can as well. Our member companies would do well to get to know these officials in all fifty states, who are mostly elected. Engagement with these officials is crucial in building the broader narrative and positive impact of direct selling.

Joining us by taking advantage of these engagement opportunities, and by creating your own as a company, is vital to sharing the larger message of the direct selling business model. We understand this participation requires the time and resources of executives and salesforce members. While the benefits of our long-term strategy may not be immediately recognizable, we know our efforts will bear fruit when the time comes with positive policies implemented instead of ones that can harm our businesses and those of millions of Americans.

We can always do more to join forces as we advocate on behalf of direct selling and our member companies. We do not want to be in a position of looking back and regretting what more could have been done to prevent a negative outcome from regulation. If there is no chance of storms and a downpour occurs, you hope not to get completely soaked. When a storm is in the forecast, you grab your umbrella and raincoat to stay dry. Bad weather is in the forecast . . . and if we band together now, we are much more likely to stay dry.