They've been derided as spruced up pyramid schemes: Companies that incentivize their own customers to become salespeople for products. Now, these so-called multilevel marketing businesses are flexing their political muscle. And they're turning to one lawmaker in particular to protect their agenda: Sen. Kyrsten Sinema.
The political action committee associated with Alticor, the parent entity of the health, home and beauty company Amway, gave $2,500 to the Arizona Democrat in late June, as did the PAC for Isagenix, an Arizona-based business that sells nutrition, wellness and personal care products. Nu Skin Enterprises, another personal care and beauty company, gave $2,500 that month, as did USANA Health Sciences, which sells similar products. In April, Richard Raymond Rogers, the executive chair of Mary Kay, a Texas-based cosmetics company, gave $2,500 to Sinema. Herbalife, which also sells nutritional supplements, gave $2,500 in July. All are affiliated with the Direct Selling Association, a trade group that promotes multilevel marketing.
The donations dont track usual political alliances. Alticor is owned by the DeVos family, one of the biggest funders of Republicans and conservative causes. And, on some occasions, they appear to be rare forays into national politics for the donor entities. Sinema is the only federal lawmaker that the Isagenix and Nu Skin PACs have given to this year. Utah-based USANA Health Sciences has only given to home state Sen. Mike Lee (R-Utah), home state Rep. Burgess Owens (R-Utah), a Republican PAC and Sinema.
When asked about the industrys support nearly exclusively for Sinema, a spokesperson for the Direct Selling Association offered little explanation: Contributions to candidates from DSAs political action committee are based on a variety of factors.
Sinema does have a personal connection to the industry: Her own mother was a direct seller. But the bigger incentive for multilevel marketers to give to Sinema appears to be her position on labor organizing. The companies face an existential threat from the pro-union Protecting the Right to Organize (PRO) Act, which would make it more difficult to classify workers as independent contractors. According to one industry source, the bill has become the driving issue since Democrats took control of the White House and both chambers of Congress. And Sinema is one of if not the only Democratic allies in the Senate.
Unions have pushed for some of the Democrats' priorities in the PRO Act to be inserted into the reconciliation bill, but for the most part, the marquee labor bill has languished before Congress since passing the House in March.
Sinemas fellow Senate moderate, Joe Manchin (D-W.V.), has already signed onto the legislation, leaving just three Senate Democrats who have yet to co-sponsor the bill Sinema, Mark Warner of Virginia and Mark Kelly of Arizona. Warner signaled his support for the PRO Act at a rally in Virginia on Monday. And Kelly has said he supports the bill broadly speaking, though he wants to see some changes, including the provision related to independent contractors, according to a Democratic Hill aide.
That leaves Sinema as the chambers chief Democratic opponent to the bill (Sinemas office did not respond to a request for comment for this story). And as with other issues, including drug pricing and tax policy, her willingness to buck her partys mainstream has earned her support from a variety of private industries. Sinema raised more than $1.1 million in the third quarter, with significant giving from the finance and pharmaceutical industries.
Multilevel-marketing is hardly a Washington, D.C., player on the scale of the pharmaceutical industry. Known for their Hey girl direct messages and often sold as get rich quick schemes, its companies lean on participants to sell their products through person-to-person sales. Those participants often receive commissions based on recruiting new distributors. But according to the Federal Trade Commission, most who join make little or no profits; some even lose money.