Tradenet Marketing Inc., FTC File No. 982 3018

False or materially misleading marketing statements are heavily scrutinized by the FTC, and may result in injunctions or fines.

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Tradenet agreed to a stipulated judgment. The company agreed to cease claiming that their laundry products cleaned as well as typical detergents, emitted negative charges and that they contain “structured water.” The company also must possess reliable and competent scientific evidence before making similar claims in the future, properly disclose testimonials that do not represent the typical user experience, and cease from misrepresenting scientific studies. The company and its officers agreed to pay fines totaling $450,000, but the FTC agreed to forgo all but $155,000 in return for the company producing accurate and complete financial disclosures.

Full case and case summary also available online at: http://www.mlmlegal.com/legal-cases/TradenetMarketingInc.php

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Topics:  Advertising, FTC, Marketing, Recordkeeping Requirements

Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, Federal Circuit | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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