Opinion ID: 174859
Heading Depth: 3
Heading Rank: 2

Heading: Percentage of Cost to Consumer

Text: Further, we decline to adopt a test that requires a commission, under § 7(i), to be strictly based on a percentage of the end cost to the consumer. While the various definitions discussed supra suggest that a commission is typically calculated as a percentage of sales price  for example a real estate broker receives 10% of a house's sale price or a paint salesmen receives 20% of his sales  both the Department and other courts have recognized that this strict percentage relationship is not a requirement for a commission scheme under § 7(i). See Dep't of Labor Op. Ltr., 2005 WL 3308624 (Nov. 14, 2005) (Commissions, for purposes of Sec[tion] 7(i), usually denotes a percentage.) (emphasis added); Yi, 480 F.3d at 508. Therefore, the fact that NutriSystem's plan is not calculated strictly as a percentage of sale price does not disqualify it from being a commission under § 7(i). [4]