AdvoCare CEO denies FTC allegations, settlement violation?
As per the settlement reached between the two parties, AdvoCare ‘waive(s) all rights to appeal or otherwise challenge or contest the validty of (the court’s) order‘.
Patrick Wright’s email states that AdvoCare ‘strongly disagree(s) with the FTC’s conclusions‘.
Wright (right) also reveals
the FTC approached us nearly three years ago asking questions specifically related to our compensation model.
In the end, it was abundantly clear the FTC was never going to allow AdvoCare to operate as we had before.
In fact, the FTC announcement states that AdvoCare is banned from multi-level marketing.
The FTC incorrectly stated in a press conference this morning that AdvoCare had admitted to operating as a pyramid. This is categorically false.
AdvoCare forcefully rebutted this charge in its discussions with the FTC. To this day, AdvoCare denies it operated a pyramid.
The settlement order, which AdvoCare and Wright consented to, acknowledges that the company neither admits or denies the FTC’s allegations.
It also states that ‘the facts alleged in the complaint will be taken as true‘.
Specifically, facts alleged by the FTC in their complaint include ‘AdvoCare operates as an unlawful pyramid scheme‘.
If AdvoCare and Patrick Wright wanted to clear their names, surely it would have cost a lot less than $150 million dollars to go to court?
Instead AdvoCare and Wright agreed to a $150 million dollar settlement, which stipulates facts alleged by the FTC are to be taken as true.
Wright’s email above is clearly at odds with the court order and FTC complaint. Having been sent out to AdvoCare distributors, it serves no other purpose than to cause confusion among the distributor-base.
This confusion works in AdvoCare’s favor, as it desperately seeks to retain what distributors it has left.
Whether the FTC will take any further action against AdvoCare or Wright remains to be seen.