The rise of influencer scams, akin to the modern day snake oil salesman, highlights the urgent need for stronger regulatory oversight and increased consumer awareness to combat misinformation and protect the public. In...more
Targeting multi-level marketers (MLMs) and other “money-making opportunity sellers” has been among the U.S. Federal Trade Commission’s (FTC) top priorities in recent years. The FTC has pursued several enforcement actions...more
As part of a flurry of activity this week before the change in its leadership, the Federal Trade Commission (FTC) announced proposed rulemakings regarding deceptive earnings claims by multilevel marketers and money-making...more
This week, the Federal Trade Commission (“FTC”) proposed changes to the Business Opportunity Rule, together with the possible enactment of a new Earnings Claim Rule. Due to the increasing number of individuals 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
“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
Texas-based direct selling company AdvoCare International, L.P. reached a settlement with FTC on October 2, 2019, after a multi-year investigation. AdvoCare's products include energy drinks, health shakes, and bodybuilding...more
I recently saw John Fogerty in concert. For those you are not aware, he was a founding member and the driving force behind Creedence Clearwater Revival (CCR), one of the very top American groups from the 1960s and early...more
ZeeksRewards is the case that just keeps on giving. The multi-level pyramid and Ponzi scheme has generated two prior SEC enforcement actions. One involved the company, Rex Ventures Group, LLC, and its principal, Paul Burks....more
Following the disclosure of the massive Madoff fraud, Ponzi scheme cases became a staple of SEC enforcement. More recently the agency seems to be focusing on another type of investment fraud scheme — pyramid schemes. At the...more
Taiwan had 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