MLM Law

Vast structures require vast experience

In recent decades, the multi-level marketing originating from the USA has attained ever more importance on the European market. Multi-level marketing, which is also known as network marketing, is a special form of direct sales in the course of which earning passive commissions by soliciting new distribution partners besides earning own commissions is in the foreground.

The law firm SBS Legal is looking back on more than 10 years of experience in the field of MLM law and can call itself the number 1 in this legal field in Europe based on the large number of international client relationships.

Multi-level marketing law:

Multi-level marketing law is rooted in numerous different legal fields and, besides the regulations on contract and sales representative law under the HGB [Commercial Code] and the BGB [Civil Code], it also covers many aspects of competition law under the Act against Unfair Competition) [UWG]. In addition, also references to corporate and anti-trust law under the Act against Restraints on Competition (GWB) must be taken into account. Lastly, product-specific regulations, for example, from the food law under the EU Regulation No 1169/2011 on the provision of food information and the German Food and Feed Code also come to bear.

The German and European case law handles the existing laws extremely restrictively. Lawyers of the law firm SBS Legal have contributed significantly to the development of the case law of the MLM law in recent years.

The lawyers of the law firm SBS Legal provide advice on all relevant fields of the multi-level marketing law:

Clients of the law firm SBS Legal receive the entire service from one source in all matters from the founding of the company to product control and contract structuring, up to the evaluation of the remuneration plan. We are at your side with advice already before the founding of the MLM company on the topics of the choice of legal form, product selection and the marketing plan. For this purpose, the law firm SBS Legal offers especially for companies from other countries comprehensive consulting – also in English – for the market entry in the German or European region.

In the drafting of general terms and conditions, company policies, remuneration plans or other contracts, we are looking back at many years of experience, and the cooperation with many well-known national and international multi-level marketing enterprises. In addition, we have advised both national as well as international businesses for many years in the enforcement of and defense against claims relating to the activity of their MLM distribution.

Our expertise:

With our many years of experience and comprehensive competence, we are at your side, in particular in the following areas:

• Implementation of the company founding and market entry.
• Product-specific consulting, in particular the test of the marketability of products and services, obtaining official permits.
• Legal evaluation and drafting of marketing plans and remuneration plans.
• Check and drafting of company policies, general terms and conditions, and other contractual arrangements.
• Defense against and enforcement of claims to commissions.
• Consulting and support for questions of competition law, in particular unfair communication or solicitation of distribution partners.
• Consulting and support for the termination of contracts, in particular questions relating to termination and termination without notice.
• Representation in all court proceedings.

If we may also assist you in the field of this law relating to sales and distribution, you are welcome to contact us.