Direct Selling Roundup: Avon’s Restructuring, FTC’s “Click-to-Cancel” Rule, and More

The direct selling is still evolving. From regulatory changes to company mergers and financial reports, it can be hard to keep up with the latest news. Here’s a quick direct selling roundup of some recent headlines impacting the industry:

Natura &Co and Avon: A Restructuring Story

First in the direct selling roundup, Brazilian cosmetics giant Natura &Co has reached an agreement with Avon’s creditors as part of Avon’s Chapter 11 bankruptcy process in the US. This move comes after Natura acquired Avon in 2020 in an attempt to revitalize the struggling direct-selling icon. The agreement highlights the challenges facing both companies in a competitive beauty industry and amidst shifting consumer behaviors.

• Read more: NATURA &CO REACHES AGREEMENT WITH AVON CREDITORS TO DRIVE FINANCIAL RESTRUCTURING

FTC Makes Cancelling Subscriptions Easier

The Federal Trade Commission (FTC) has announced a new “click-to-cancel” rule aimed at making it easier for consumers to cancel subscriptions. This rule combats deceptive marketing practices and requires sellers to provide clear cancellation mechanisms. This is a significant development for the direct selling industry, as many companies rely on subscription models.

• Read more: FTC Announces “Click to Cancel” Rule

Positive Growth in the Italian Market

Despite economic challenges, the direct selling industry in Italy is showing resilience. Univendita, the largest direct sales association in Italy, reported a slight turnover increase in the first half of 2024, with growth in cosmetics, body care, and food sectors.

• Read more: Univendita (DSA Italy) Members Reach EUR 754 Million Turnover in the First Half of 2024

LR Health & Beauty SE Reports Growth

LR Health & Beauty SE, a leading European digital social commerce company, has reported significant sales growth in the third quarter of 2024. The company attributes this success to the launch of new products and a realignment of its career plan for distributors.

• Read more: LR Health & Beauty SE Further Increases Growth Trend in the Third Quarter

Key Takeaways for Direct Sellers:

• Stay informed: Keeping up with industry news, including regulatory changes and competitor activities, is crucial for success.
• Adapt to consumer trends: The Avon story highlights the importance of adapting to changing consumer preferences and embracing digital tools.
• Embrace transparency: The FTC’s “click-to-cancel” rule emphasizes the need for clear and honest communication with customers.
• Focus on distributor success: LR Health & Beauty SE’s growth demonstrates the importance of supporting and empowering distributors.

That’s it for the direct selling roundup! By staying informed and adapting to the changing landscape, direct selling companies can position themselves for continued growth and success. For more info on how Exigo is helping companies like yours get incredible results, click here.