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FTC coming down on these MLM companies for earnings and health claims regarding Covid.

FTC really is doing a good job cracking down these companies shady MLM practices.

You can read the letters sent by FTC to companies: https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health



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10 replies on “FTC coming down on these MLM companies for earnings and health claims regarding Covid.”

I rarely ever see any company get prosecuted, they just get hit with a fine or a stern warning to knock it off. A slap on the wrist… that is why MLM’s are so bold.

For anyone interested about the FTC and why MLMs are never prosecuted, check out The Dream podcast. They do a really interesting dive into this exact topic. Not affiliated to it in any way, I just found it to be a good listen.

My friend has recently gotten into this MLM called Im Mastery Academy. Its about forex and I have been trying to tell him that the 99% actual traders are not the ones making money. Its the 1% of salesmen and marketers who sell this “easy money” idea to youths. Does anyone know if this is being looked into?

Can they crack down on my ex partner? She refused to take my kids outta school and said her friend whoโ€™s a nurse told her if you put Vaseline up your nose you canโ€™t catch covid….

Itโ€™s likely not the companies that are non compliant, but their distributors making outrageous claims. Of course the companies are responsible in the end. Their compliance departments are gonna be busy.

The companies encourage their sales people to get as bold as they dare. The company can say “Oh, well, it was a rep, not us! Refer to our official policies on income claims. We’re legit!”

The sales reps are encouraged to make these claims through the very structure of the offer. You aren’t going to make much (read “any”) unless you have lots of people under you in your organization. You get those people in the one way we all respond to… insinuating the new rep will be rich! How rich? We can’t say, but RICH!

The facts remain. it’s the MLM that gets rich, not their sales people… yes, I know, they all could trot out a few people who’ve made money, maybe even a lot of money, but we know that 99% of people will lose money while entangled with an MLM. According to the FTC, a no-product pyramid scheme is better than an MLM, with just 90% losing their money.

[https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf](https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf)

Checked the list but dont see Family First Life. They spam fake invoices of members monthly incomes above 20k$ with a beach background all over Facebook

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