FTC sends 379 MLM companies deceptive/unfair conduct notices
The FTC has issued at least 379 MLM companies with deceptive and/or unfair conduct notices.
This was announced by the FTC on October 26th. If it slipped under your radar, you’re not alone.
I learned of the FTC’s announcement via a tip sent in by a reader.
At first I thought there was some funny business going on. But upon closer inspection, was able to verify the FTC did indeed make an announcement.
Surprisingly this didn’t pop up on any of my regular news feeds.
The FTC’s notices pertain to “penalty offenses concerning money-making opportunities and endorsements and testimonials”.
Recipient companies of the notices have been sent
determinations in prior litigated cases that particular acts or practices are penalty offenses—i.e., that they are deceptive or unfair, unlawful under Section 5 of the Federal Trade Commission Act, and prohibited by a final cease and desist order.
Confusingly, the notices don’t contain any examples of similar conduct by the recipient company.
The FTC explicitly clarifies;
Staff is not singling out your company or suggesting that you have engaged in deceptive or unfair conduct.
But also warns;
Receipt of these notices of penalty offenses puts your company on notice that engaging in the conduct described therein could subject you to civil penalties of up to $43,792 per violation.
In its accompanying press-release, the FTC definitely sounds like they’ve targeted specific companies.
FTC Puts Businesses on Notice that False Money-Making Claims Could Lead to Big Penalties
The Federal Trade Commission is putting more than 1,100 businesses that pitch money-making ventures on notice that if they deceive or mislead consumers about potential earnings, the FTC won’t hesitate to use its authority to target them with large civil penalties.
There’s nothing ambiguous about that.
Personally I find it hard to believe the FTC chose recipient companies at random.
Equally there’s no point reading too much into the company list at this stage, based on the FTC’s above statements.
As to the MLM companies sent notices, I’ve listed them below with their corresponding BehindMLM reviews where available.
- 1044Pro
- 4Life
- 5Linx (co-founders arrested in 2017, sentenced to prison in 2019)
- 7K Metals
- ACN
- Allysian Sciences
- Aloe Veritas
- Aloevea
- Alphay International
- Aluva
- Amare Global
- Ambit Energy
- American Dream Nutrition
- Amplifei
- Amway
- Anovite
- Apex Financial
- APLGO
- Arbitrage Go
- Arbonne International
- Arieyl
- Ariix
- Atomy USA
- Avon
- bHip Global
- BeachBody International
- Beauty Counter
- Beauty Society
- beCAUSE Cosmetics
- Become Beauty International
- Bellame
- B-Epic aka R&D Global
- Better Planet Paper Toilet Tissue
- Beyond Organic
- Beyond Slim
- BioReigns
- Bitles
- Bixo Trade (Ponzi rebooted as Bixo Money, also on the list)
- Black Oxygen Organics
- Block Consult
- Bode Pro
- Bomb Party
- Bonvera
- Brank
- Bruxis (Ponzi collapsed June 2021)
- Builderall
- ByDzyne
- Calerie
- CashFX Group
- Changing the Future Outcome
- ClearUnited
- Color Street
- Control Traders
- CorVive
- Crunchi Cosmetics
- Cutco, aka. Vector Marketing Corporation
- Dabank
- Dagcoin
- Damsel in Distress
- Digital Profit
- Dot Dot Smile
- doTerra
- Dubli Network
- DuoLife
- DXN Global
- Eaconomy
- Easy1Up
- Elamant (owner Ryan Evans sued by SEC for securities fraud)
- Elegance Inc
- Elepreneurs
- EmpiresX
- Empower Network
- Emris International
- Enagic USA
- Epic Trading
- Epicure
- EPX Body
- Essante Organics
- Everra Beauty
- Evolution Travel
- Evolv Health (rebooted as Alovea, also on list)
- Exp Reality
- F2S Fund
- Family First Life
- Farmasi
- Forever Living Products
- Forever Green International
- Fortress Network
- Freebay (Karatbars spinoff, also on list)
- Freedom Equity Group
- FutureNet
- FuXion
- Gameas
- Gano Excel
- Global Domains International
- Global Tech & Innovation
- Global Virtual Opportunities (GVO)
- Globallee
- GNLD dba NeoLife (also on list)
- Go9Tro
- Green Compass
- GreenGold
- Griddy Pro
- Healthy Habits Global
- Hemptonics USA
- Herbalife
- Hulsa
- Hungry Bark
- iBuumerang
- iCoinPro
- IDentityUSA
- IDLife
- iGenius
- I-Insure Me
- Immunotec Research
- Incoco dba Color Street (also on list)
- InCruises
- Innov8tive Nutrition
- Intense Live
- International Markets Live LLC (dba IM Mastery Academy)
- Isagenix
- IsXperia
- It Works!
- iThrive Network
- iX Global
- Jafra Cosmetics International
- Jamberry (collapsed 2018, now part of BeneYou)
- Jeunesse Global
- Jewel Sanitary Napkins
- Jewelry Candles
- JewelScent
- JIFU
- Jordan Essentials
- JR Watkins
- Jump to Health
- Juuva
- Kannaway
- Karatbars International
- Kyani
- Kynect Energy (recently acquired by ACN)
- KZ1
- LegalShield
- Leo Trade
- Le-Vel
- Life Force International
- LIFE Leadership
- LifePlus
- LifeVantage
- LifeWave
- Limbic Arc
- Limu
- Liv International
- Liv Labs
- Longrich
- LuLaRoe
- LurraLife
- Lyconet (aka Lyoness, aka myWorld both also on list)
- Mannatech
- Market America
- Mary Kay
- Max International
- MediFast (dba Optavia, also on list)
- Melaleuca
- Miessence
- MIG Living
- Mint Builder
- Model Farming
- Modere
- MojiLife
- Monat Global
- Monk Trading
- Morinda (rebranded as Noni by NewAge, also on list)
- Moringo Organics
- Motor Club of America (aka TVC Matrix)
- Multimine
- Multipure
- MWR Life
- My Blockchain Life
- My Daily Choice dba Hempworx
- myEcon
- MyTravelBiz
- My Lala Leggings
- My Lead System Pro
- My Nutra
- Naris Cosmetics
- National Agents Alliance
- National Wealth Center
- National Health Trends Global
- Nature’s Frequencies
- Nature’s Sunshine Products
- Navan Global (owner Trey Knight indicted for wire fraud a few months ago)
- Nefful USA
- NeVetica
- New Avon
- New Earth Life Sciences
- NewULife
- NeXarise
- NHT Global
- NoFilter Global
- Northe Star Global
- Norwex
- Nu Skin
- Nui dba Symatri & Mintage Mining
- Nussentials (closed June 2021)
- NuYuGen
- NYR Organic
- Omega Digital
- OmegaPro Forex
- OmniLife USA
- Omnitrition International
- OneCoin (several executives indicted in the US)
- OneHope Wine
- OnPassive
- Opulence Global
- Organo Gold
- Ormeus Global (owner John Barksdale arrested in Thailand in 2019)
- OXO Worldwide
- Pampered Chef
- Paparazzi Accessories
- Park Lane Jewelry
- PartyLife
- pawTree
- Perfectly Posh
- PGI Global (twice collapsed Ponzi scheme, under criminal investigation in the US)
- PHP Agency
- Pink Zebra
- PixieLane
- PlanNet Marketing
- Plexus Worldwide
- PM International
- Pomifera Oil
- Poofy Organics
- Powur PBC
- Premier Financial Alliance
- Primerica
- Profit Connect (Ponzi scheme shut down by SEC in July)
- Project Lantern
- Prosperity of Life
- ProTravelPlus
- Pruvit Ventures
- Pure Gen Holdings (formerly Genesis Pure, now dba PURE)
- Pure Haven
- Pure Nerium dba PURE
- Pure Romance
- Purple Mining
- Pyur Life
- Q Sciences
- R&N Health Enterprises dba TruAura
- Radiantly You
- Rain International
- Rarity Nails
- SaladMaster
- RegenaLife
- Reliv International
- Rena Ware International
- Resorts360
- Restapreneurs (dba Snap Delivered, also on list)
- RevitalU
- Richway Global Asset Management
- Rodan & Fields
- Root Wellness
- Saba For Life
- Sabika Jewelry
- Sanctuary Girl Jewelry
- Sanki Global
- Sass N Frass
- Savings Highway Global
- Scent-Sations
- Scentsy
- Scout & Cellar
- SDK Meta
- Seacret Direct
- Seed Change
- Seint
- SendOutCards
- SeneGence
- Senexa
- SevenPoint2
- Shaklee
- Siberian Wellness aka Siberian Health
- Signature Homestyles
- Silver Icing
- Simply Naturals
- Sisel International
- Sistaco
- SnapBots
- Solvasa
- Soul Purpose
- Sseko Designs
- Stamped 4 U
- Stampin’ Up
- Stella & Dot
- Stemtech (filed for bankruptcy in 2017)
- Stiforp
- Stream Energy
- Style Dots
- Sunrider International
- SuperDraft Pro
- Surge365
- Synergy Worldwide
- Talk Fusion
- Tastefully Simple
- TelexFree ($3 billion Ponzi scheme shut down by the SEC in 2014)
- The Happy Co.
- Juice+
- Thirty-one Gifts
- Thrive Life
- Tocara Inc.
- Total Life Changes
- Touchstone Crystal
- Touchstone Essentials
- Touchstone Success
- Traffic Authority
- Tranont
- Traveling Vineyard
- Travelution
- Traverus Global
- Travorium
- Trevo
- Trivita
- Trunited (shut down September 2019)
- TruVision Health (now Truvy)
- Tryp Ride Share
- TS-Life
- Tupperware
- Uforia Science
- Unicity International
- Univera (shut down MLM business in December 2020)
- Uno Premier
- UR Worth It
- Usana
- USFIA (Ponzi shut down by SEC in 2015)
- Valentus
- Vantel Pearls (shut down July 2021)
- Vasayo
- Vibe Rides
- Vida Divina
- Viiva
- ViSalus (imploded due to telemarketing fraud in 2019)
- Visi Global
- Viva Life Science
- Vollara
- VoxLife
- Wakaya Perfection (now Mfinity Global)
- Wanae USA
- We Share Abundance
- Well Beyond (sold off to My Daily Choice in September 2021)
- Winasun
- Wine Ambassador
- Wines For Humanity
- WineShop At Home
- World Financial Group
- World Global Network (rebooted as Vyvo)
- WorldVentures (filed for bankruptcy in December 2020)
- WynLife
- Xellis
- XIPWorks
- Xoom Energy (part of ACN, also on list)
- Xooma Worldwide
- Xpirient
- Xyngular
- Yanbal International
- Yelloow
- Yijia
- Yoli
- YOR Health
- Young Living
- Youngevity
- Younique
- YTB
- Zermat International
- ZetBull
- Zija
- Zilis
- Zinzino
- Zomoney
- Zrii dba Zilis, also on list
- Zurvita
- Zyn Travel aka Zyndio
That’s a pretty long and exhaustive list. The FTC claims each of the companies received a notice during October 2021.
Which is a little odd, seeing as TelexFree and Traffic Monsoon are on there.
TelexFree was a $3 billion Ponzi scheme launched in 2012. The SEC shut it down in 2014, with the DOJ going on to indict its co-founders.
Similarly, Traffic Monsoon was a Ponzi scheme the SEC shut down in 2016. Traffic Monsoon wasn’t MLM so I didn’t include it in the above list.
Needless to say neither TelexFree or Traffic Monsoon have existed for years. So who’s marketing it and where the FTC sent its notices is unclear.
Note these were the two most obvious examples on the list (surprised Zeek Rewards wasn’t on there). USFIA is another standout.
Anyway, looking forward I’m kind of in two minds – and I can’t decide which way this will go.
Either the FTC just declared war on the MLM industry; or this is list was put together to have something to point at when deceptive marketing claims are brought up.
Deceptive claims being used to market MLM companies isn’t a new issue. It’s been chronically problematic for decades.
Personally I think a far more effective approach would have been to single out companies. This starts with consumer complaints and is then followed up on by the FTC.
It’s not like anyone is hiding deceptive claims pertaining to MLM companies. They’re everywhere.
Round up five or ten examples and send off an actual warning notice.
Put that company on a list and if this plays out once or twice again, start putting together an FTC Act violation lawsuit.
And not just one every five years – as many as it takes. That’s how you effectively tackle this.
Instead we seem to have gotten;
“Hay guys, just a reminder that the FTC Act exists and it’s out job to regulate violations, which you may or may not be committing. Kthx.”
Not sure how effective, or more likely ineffective, that’s going to be.
But hey, maybe the FTC will follow up with actual violation notices and fines.
N.B. There’s probably a few MLM companies on the list I missed.
I did run a lot I didn’t recognize to check if they were MLMs but no doubt some slipped through the cracks.
So it begins.
Amway too? And Avon? That’s not a good look to be included with the likes of OneCoin. And Herbalife.
This is war against MLM.
I love Tupperware’s products.
Crowd1 are absent but I guess the operatives learned from previous scams that the US is best avoided
Tupperware made the list. I didn’t include it because I haven’t reviewed the business model.
A cursory search revealed confusion as to whether they actually have an MLM comp plan.
Putting that list together with the links fried my brain so I erred on the side of caution :D.
I’d love to know where the FTC sent their OneCoin notice lulz.
The list included more than just MLM companies. Amazon and other global companies also received these letters. It wasn’t targeted to just MLM companies.
Ultimately, the FTC is positioning themselves to us other covenants of the FTC act to collect penalties after the US Supreme Court ruled 9-0 that they did not have the authority under Section 13(b) of the FTC act to assign financial penalties.
In summary, the FTC has put the entire sector on notice that all unsubstantiated income claims that are false and misleading will no longer be tolerated.
The penalty authority allows them to fine a company up to $43,792 per violation. The message is that hyping the income opportunity is something that will need to better policed.
@ Gordon: that is pretty serious. It’s been a long time coming but it is serious. It will be amazing if the US can tie this to everything else they do.
Here’s looking at you Africa: you want that American aid that stops you from starving? Good.
Stop your own people and others from stealing the aid via dodgy schemes that the American taxpayer gave you to waste.
@Stevie Gordon was a longtime MLMer for the Juice+ scam. Now he coaches others how to be successful scammers.
Char. Not sure why you elected to attack me when I’m just adding some additional information.
I won’t respond to your claims about what I do because it has not merit. My time is spent with my technology company and working with companies on change management.
Ha ONPASSIVE MADE THE LIST???
They have not launched at all.
I suppose just making claims is enough to be fined!!
Alerting people about what you do and did is not an attack; it’s fact. It also provides important context when evaluating your comments.
A simple internet search proves otherwise.
Congratulations myWorld! And another record was broken. Only one company makes it onto the list three times. Pages 15 and 16!
We will publish an article on Thursday with further information.
Confirmed. From the first Google hit, opening paragraph of Gordon Hester’s Linked-In page:
MLM by any other name is still multi-level marketing. The fact that Hester feels the need to couch it in such vague terms shows intent to deceive, in my book.
Which is good indeed they aren’t just targeting MLM companies.
If you have an affiliate program and your affiliates go rogue with obscene income claims without being gagged like “BECOME A MILLIONAIRE DROPSHIPPING FROM AMAZON” then you’re up for a fine.
IM Academy isn’t on the list and a lot people say it’s a scam.. that fact that all these mlms are on the list but IM Academy means FTC approves it because they have looked into it.
Lol.
What a huge leap in logic,you’re a bit desperate yeah?
Desperate for what?
To have IM Academy be legit.
Tip: It’s not.
https://behindmlm.com/mlm-reviews/im-mastery-academy-review-imarketslive-rebooted/
Except that they are, here at number 120.
Nice catch!
You’re right..
@chris wells
A person changed to another person is still the same person.
Do I really have to point out US regulators don’t endorse MLM companies?
Meh, I’m not excited about this.
Saw at least a dozen breaches yesterday.
I’ll get excited when they start taking action,
The companies don’t care as long as they are getting money from the customers, they don’t care that the customers are the ‘business owners’who put themselves into debt under instruction from uplines to make rank each month and that untold riches will follow.
I feel this is just talk.
I would be absolutely thrilled to be proved wrong and for them to start issuing fines, until then I’m not getting my hopes up.
How could Brank be on this list? Ari told us it was the real deal, not a Ponzi and they were doing it right.
Heck, they can’t even launch this turkey which is why I was surprised to see it on the list. But on the list it is.
I pressume Wings and Bitwings are missing…