ScamTelegraph notes that GiveOpp's 'Earnings and Income Disclaimer' contains a specific clause prohibiting South Dakota residents from participating in or purchasing the business opportunity. The company offers no public explanation for this exclusion, prompting an investigation into potential regulatory conflicts or historical precedents involving multi-level marketing operations in the state.

The disclaimer's final statement, "This opportunity is not available to residents of South Dakota. Residents of South Dakota may not participate in or purchase this opportunity," stands out due to its unusual specificity. Without further elaboration from GiveOpp, the reasons for this geographic restriction remain open to interpretation, suggesting potential issues with state-specific regulations governing income opportunities or multi-level marketing.

One significant precedent in South Dakota involves Liberty League International, a company that faced a ban from operating in the state. An undercover report revealed that Liberty League associates required a product purchase to participate in its income opportunity. Such a requirement is illegal for business opportunities in South Dakota. Tony Rush, an ex-EMC member of Liberty League International and Polaris Media Group (Liberty League's later name), confirmed this ban, stating, "Liberty League couldn’t operate in South Dakota for most of the time they were in business."

While there is no suggestion that GiveOpp is a direct reincarnation of Liberty League International, a notable connection exists through key personnel. Prominent GiveOpp members, John and Shannon Lavenia, along with GiveOpp's CEO Mark Cosby, were all previously deeply involved with Liberty League. It is plausible that any court findings or settlement terms related to Liberty League's South Dakota ban included clauses preventing its former management from operating future business opportunities within the state. This historical link, particularly given the involvement of the Lavenias and Cosby, makes the South Dakota restriction in GiveOpp's disclaimer appear less coincidental.

Another potential reason for GiveOpp's exclusion of South Dakota residents could relate to the state's requirements for multi-level marketing companies regarding parent company disclosure. Reports from 2005 indicated that MLM company Herbalife instructed its distributors to explicitly disclose Herbalife as the promoting company in all advertising within South Dakota. If GiveOpp has a complex corporate structure or is unwilling to comply with such disclosure requirements, it could lead to an inability to operate legally in the state.

Why is GiveOpp not available in South Dakota?

GiveOpp's 'Earnings and Income Disclaimer' explicitly states that the opportunity is not available to residents of South Dakota. The company has not provided a public explanation for this restriction.

What past issue might be relevant to GiveOpp's South Dakota restriction?

Liberty League International, a previous venture involving some current GiveOpp executives, was banned from operating in South Dakota due to requiring product purchases for income opportunity participation, which is illegal in the state.

Who are the prominent individuals linking GiveOpp to Liberty League?

GiveOpp's CEO Mark Cosby, along with John and Shannon Lavenia, were all significantly involved with Liberty League International prior to their roles with GiveOpp.

Are there other reasons why South Dakota might restrict MLM operations?

South Dakota regulations may require multi-level marketing companies to disclose their parent companies in all advertising, a requirement that could pose a compliance challenge for some operations.