Legal Question in Business Law in California

I'm pretty sure there is no law specifically prohibiting giving a commission to a sales-party hostess. It's possible there may be a contract-based limitation or prohibition written into a contract with the merchandise provider, or something of this sort. It's also possible that accepting a commission puts the host "in business" under certain rules, thus perhaps violating the terms of homeowner's insurance, municipal zoning and business-licensing ordinances, or engendering a duty to report income, file tax returns, etc.

As a Franchise Attorney I agree with the other attorney answer. Whether the hostess must disclose he or she is receiving a commission to those who attend is an entirely different issue. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation