Why is ForMor violating the FTC ruling about all MLMs having “a ten customer rule?”

In the early 1979 case… Amway vs. U.S. Federal Trade Commission (FTC)…
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The FTC ruled that a multi-level company was only compliant as long as every distributor was working toward gathering ten customers…

“The '10 customer' rule states that '[i]n order to obtain the right to earn Performance Bonuses on the volume of products sold by him to his sponsored distributors during a given month, a sponsoring distributor must make not less than one sale at retail to each of ten different customers that month and produce proof of such sales to his sponsor. This rule makes retail selling an essential part of being a distributor.”

In February of 2009, ForMor International, under the leadership of Dan Hobbs, changed the compensation plan and eliminated all customers and instructed the distributors that they were no longer to gather customers…only distributors.

This is in direct violation of the FTC ruling established in 1979. In fact, after receiving heat from their distributors, ForMor eventually backed down from boldly telling their distributorship to do this, but even today it is impossible to track customers in the back office system they provide their distributors, so there is no way of knowing if the distributors are being compliant in gathering customers or just signing up distributors, which, according to the FTC ruling, distributors do not count as customers and thus do not fulfill the “10 customer rule.”
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