FTC Warns Health And Wellness Direct Sellers Preying On Pandemic-Stressed Consumers
FTC warned 10 US direct sellers about false claims for health and wellness products that prey on consumer fears over COVID-19. The agency says it will continue to monitor the market for unfounded health claims as well as direct sellers' statements about distributors' potential earnings.
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Direct Selling Self-Regulatory Council and Direct Selling Association guidance aims to curb multi-level marketers’ misleading earnings claims, a practice increasing among health and wellness direct sellers during the COVID-19 pandemic.
A BBB National Programs, Inc. investigative unit tells FTC that Dose of Nature failed to respond to its request to support its CBD oil claims; Utah direct sellers Young Living and doTerra agree to pull or modify drug claims for their essential oil products; HempWorx relabels topical as cosmetic.
Guidance notes settlements Herbalife and Vemma Nutrition made in 2016 as examples of its enforcement policies. FTC prohibition against misleading claims extends to requiring direct sellers to base claims of distributors' compensation on sales to consumers, not on measures such recruiting more distributors.