§ 641. Weight loss services and products. For the purposes of this article:

Terms Used In N.Y. General Business Law 641

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

1. "Weight loss services" shall mean counseling and educational activities, including, but not limited to, recommending the use of weight loss products, which have the primary purpose of helping individuals reduce body weight. Weight loss services does not include providing information to the public regarding individual weight loss products if the person, firm or corporation is not also engaged in counseling activities.

2. "Weight loss products" shall mean any foods, ingredients or components of foods, nutritional formulas or supplements, drugs, equipment or any other products sold or offered for the primary purpose of helping individuals reduce body weight.

3. "Direct seller" shall mean any person if (a) such person is (i) engaged in the trade or business of selling or soliciting the sale of consumer products to any buyer on a buy-sell basis or a deposit-commission basis for resale by the buyer or any other person in the home or otherwise than in a permanent retail establishment, or (ii) engaged in the trade or business of selling or soliciting the sale of consumer products in the home or otherwise than in a permanent retail establishment;

(b) substantially all the remuneration, whether or not paid in cash, for the performance of the services described in paragraph (a) of this subdivision is directly related to sales or other output, including the performance of services, rather than to the number of hours worked; and

(c) the services performed by the person are performed pursuant to a written contract between such person and the person for whom the services are performed and such contract provides that the person will not be treated as an employee with respect to such services for state and federal tax purposes.