MLM Defense: FTC Earnings Claims and Nonsolicitation Clauses
On January 13, 2025, the Federal Trade Commission announced that it is seeking public comment on proposed changes to the Business Opportunity Rule and a proposed new Earnings Claim Rule to strengthen the agency’s tools to...more
The FTC released two Notices of Proposed Rulemaking (NPR) and an Advance Notice of Proposed Rulemaking (ANPR) that would establish a new Earnings Claims Rule and expand the existing Business Opportunity Rule – changes that...more
Has your company received an FTC warning letter or a penalty offense notice? If so, such correspondence should not be ignored because there is a high likelihood that the FTC is in the process of actively and quickly seeking...more
Historically, the Federal Trade Commission (FTC) has touted self-regulation as integral to consumer protection. This has included encouraging industries to work with the Better Business Bureau (BBB) in developing a...more
Last week, a class action was filed in California state court alleging that Optavia, a multilevel marketing (MLM) company selling weight loss products and services, violated California's Automatic Renewal Law (ARL). The case,...more
In November 2019, the Federal Trade Commission filed a lawsuit against direct selling wellness company Neora, LLC (f/k/a Nerium International, LLC) and its Chief Executive Officer alleging that the company operates as an...more
“Blessing Loom” Scheme Unravels in FTC Settlement - Esoteric trappings can’t save pyramid-scheme-by-another-name - Neolawgism - By certain ironclad laws of demography, we aren’t allowed to add terms to the...more
The FTC announced today that it had settled charges with multi-level marketer and seller of health and wellness drinks Vemma over allegations that it operated a pyramid scheme. The FTC initially filed the action in August...more
Taiwan has approximately 369 multi-level marketing (MLM) companies and a total of 3.09 million MLM participants, as of December 31, 2012. Adjusting for people who participate in more than one MLM company, almost 12% of...more