Advocare Out Of Pyramid Scheme, Into Single-Tier Sales Under FTC Settlement
Advocare "is admitting that it operated as a pyramid and they are agreeing to no longer operate in multi-level marketing," says FTC Consumer Protection direct Andrew Smith. Firm is marketing sports, weight-loss and wellness products on a single-tier model with distributors' compensation based on selling directly to end-users.
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US Wellness Market In 2019: Amarin Wins, Loses On Supplements; Gottlieb Leaves With Consumer Health Flourish
Looking look back on US wellness market developments and events in 2019, HBW Insight finds a firm that doesn’t compete in the dietary supplement sector, Amarin, made a good bit of news that affected the industry during the year. We track news across the wellness space from the past year.
Firm says "we refuse to be bullied into a settlement" and FTC conflates legal MLMs with pyramid schemes by alleging every MLM paying incentives "for recruitment of participants” is a pyramid scheme. Separate firm supplying ingredient for brain health supplement agreed to settlement of FTC false ad complaint.
Maybe there’s truth in aloe, but there’s too little of it in earnings and health-related claims made by wellness and skin-care firm Aloe Vertitas and its Lifestyle Coaches, according to the direct-selling industry’s self-regulatory body. The DSSRC is referring the company to the Federal Trade Commission for failure to state its compliance or appellate intentions.