[co-author: Stephanie Kozol]*
Nevada Attorney General (AG) Aaron D. Ford recently announced that the State of Nevada and the Federal Trade Commission (FTC) have filed a suit against IYOVIA. IYOVIA currently operates under the brand names IM Mastery Academy, iMarketsLive, and IM Academy (collectively, “IML”) and is accused of falsely promising significant income through trading in various financial markets and through a multi-level marketing scheme.
According to the complaint, IML representatives lure consumers in through social media posts then invite consumers to have a phone call or to a live sales event. IML sales representatives then allegedly tell consumers that, through purchasing IML’s services, IML’s “trainers” or “educators” will teach consumers how to make significant income. IML’s advertising includes depictions of luxurious lifestyles, including claims of retiring in your 20s, expensive cars, and lavish vacations that are purportedly funded by trading profits and IML commissions. The FTC and Nevada AG’s office allege that IML lacks substantiation for these claims.
Furthermore, the complaint accuses IML of rewarding salespeople who make deceptive claims with lucrative payouts. The complaint also states that IML instructs salespeople on how to evade detection by IML’s compliance program and law enforcement. Nevada and the FTC allege that IML has violated the FTC Act, the Telemarketing Sales Rule, the Restore Online Shoppers’ Confidence Act, and Nevada’s Deceptive Trade Practices Act.
Why It Matters
This case underscores the importance of adhering to consumer protection laws across all platforms from social media to in-person representations. Misstatements and deceptive earnings claims are significant red flags that can draw the attention of regulatory bodies like the FTC and state AGs. It is crucial for MLMs to implement robust controls and compliance measures to ensure that all earnings claims are accurate, substantiated, and transparent. By doing so, companies can protect themselves from legal scrutiny and maintain consumer trust. This case serves as a stark reminder of the potential consequences of neglecting these responsibilities.
*Senior Government Relations Manager
