Bioperformance and Recovery of Losses - Is this a viable class action?
It is illegal for operators or participants in a multi-level marketing plan to make representations relating to compensation or earnings under the plan unless they include the amount of compensation actually or likely to be received by a typical participant of the plan. Such representations can mislead potential recruits to believe that it will be easy to make large amounts of money.As well, operators of, and participants in, a multi-level marketing plan should ensure that any representations made about the plan are -- or include information that is -- fair, reasonable and timely as the plan relates to:
* the different levels of earnings or compensation received by participants in the plan;
* the amount of money earned by a typical participant; and
* the time and effort required to reach specific levels of income.
However, I am not aware of any Canadian Class Action involving section 55 or 55.1. Perhaps as network marketers become more aware of their disclosure rights this will change.
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