Be Careful of Defamation

Claiming false facts about any mlm or direct sales company is never a good thing. Most likely it will land you in jail or in some court case instead. While I was never shy about my experience with my company, I never named them and neither will I ever intend to. Many mlms have a small print claim where they actively forbid you the distributor to talk shop, even after you left their “employ”.

This is largely to cover their bums, but also our own since otherwise people would throw allegations left right and centre and many of them mightnt be true.

As you can imagine, this could potentially hurt a company real bad and cost them thousands of dollars in lost revenue.

Therefore never publicly abuse a company unless you can back it up with facts. Even then Id be very careful as there are a lot of gray zones I believe.

To further help you understand what could happen, read the story about the mlm firm who was found to have defamed a rival.

THEY ran down their main rivals products at two sales talks.

Now, the company, Meridian Life International, and its two employees have been found to have slandered its competitor WBG Network.

Both multi-level marketing firms sell a common range of health products containing a sub-species of the chlorella family of algae.

WBG has been around for 11 years and now has an annual turnover of about $45 million. Meridian is a relative newcomer, having just started in 2004.

The two employees of Meridian, Mr Lim Jit Shyan and Mr Ivan Tan, had been distributing the products, known as the Hunza range, for WBG until 2003, when they both left the firm.

Two years later, both men joined Meridian, which had obtained a licence from the Taiwanese supplier to distribute the products here.

At a sales talk on Meridians premises on March 30, 2006, both made comments about their former companys products which Justice Andrew Ang ruled were defamatory.

Among other things, they told their audience that WBGs products no longer contained a vital ingredient and that WBG misrepresented its products.

Two days later, the two men repeated some of their remarks at another sales talk.

Among the audience at both talks was Mr Bruce Cai Qing – an active distributor for WBG since August 2002.

In this rare commercial defamation suit, both sides agreed at the start that Meridian would accept liability as well if the allegations against its two employees were proven.

It is not known if they are still working for the company.

Justice Ang ordered a separate hearing to assess the damages to be awarded, which will not be the $12 million that WBG, represented by lawyer Gabriel Peter, is seeking. The judge said WBGs evidence for its losses would support a claim of $8 million at best.

Justice Ang noted that the second presentation was a covert sting operation set up by WBG to entrap Meridian, unlike the first, which might be a typical MLM sales pitch.

The judge noted that Ms Sharon Ong, who attended the second session, admitted WBG employed her to record the remarks of Mr Lim and Mr Tan. Her role was to persistently ask them suggestive questions to precipitate the making of defamatory remarks, he added.

As you can see, this kind of behaviour has landed this company in court and they might end up having to pay some $8 million if the claim gets awarded.

Just imagine if that was you who had to bite the bullet. Be very careful what you say if you ever present on stage at an opportunity gathering. Never defame a rival company, as this could easily bite you in the bum. On the contrary, if you are an opportunity seeker and you see this type of behaviour, report it to officials.

Defamation will have to be stopped if we want people to make informed choices based on the valuable and honest information.

Let us know if you have ever seen something like this before or were made to use this practice in your company.

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