MLM News Alert

[ Dec. 19, 2022 ] Ruby Ribbon, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Ruby Ribbon, a California-based MLM that markets women’s apparel, handbags, and other accessories, uses atypical earnings claims to market its business opportunity, including the ability to earn unlimited income and achieve financial freedom. The DSSRC concluded that the company made a good faith effort to remove all of the social media claims at issue and recommended that two claims remaining on the company’s website be modified or discontinued.

[ Dec. 16, 2022 ] Unicity International, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Unicity International, a Utah-based MLM that markets nutritional and personal care products, uses unsubstantiated health claims to market products, including the ability to treat diabetes, cholesterol, high blood pressure, depression, and cancer, and atypical earning claims to market its business opportunity, including the ability to earn “life-changing” income. The DSSRC determined that the company removed many of the social media posts at issue and had made good faith efforts to remove the remaining claims. As such, the DSSRC administratively closed the inquiry.

[ Dec. 13, 2022 ] Tealightful Treasures, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Tealightful Treasures, a New York-based company that markets loose-leaf tea products, uses unsubstantiated health claims to market products, including the ability to boost the immune system, reduce symptoms of sinus infections, and provide relief from colds and flus. Tealightful Treasures, which took steps to have the posts at issue removed, responded that it changed its business model in 2019 and no longer operates as a direct selling company. As such, the DSSRC determined that the matter was outside of its jurisdiction and administratively closed the inquiry.

[ Dec. 12, 2022 ] ViSalus, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that ViSalus, a California-based company that markets weight management nutritional products, dietary supplements, and energy drinks, uses unsubstantiated health claims to market products, including the ability to treat diabetes, fibromyalgia, cancer, arthritis, and migraines, and atypical earning claims to market its business opportunity, including the ability to earn significant income, cars, and vacations. The company did not respond to the inquiry prompting the DSSRC to refer the matter to the FTC and the California Attorney General.

[ Nov. 23, 2022 ] PartyLite Worldwide, LLC: The DDSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that PartyLite Worldwide, a Massachusetts-based MLM that sells candles, home décor, and home fragrance products, uses atypical earnings claims to market its business opportunity, including the ability to earn unlimited income and vacations. The DSSRC determined that the company removed some but not all of the social media posts at issue, made a good faith effort to have the remaining claims removed, and recommended that the company continue to take steps to complete the removal of problematic claims.

[ Nov. 28, 2022 ] Ardyss International, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Ardyss International, a Nevada-based MLM that sells reshaping apparel, nutrition, personal care, and home care products, uses unsubstantiated health claims to market its products, including the ability to treat cancer, Alzheimer’s, heart disease, arthritis, and diabetes. The DSSRC also identified one atypical earnings claim to market the company’s business opportunity, stating “Every day you have a great opportunity to start achieving your goals. What are your goals in 1, 5, or 10 years? #millionaire minds.” The DSSRC determined that the company removed some of the identified posts and made a good faith effort to remove the remaining posts. The DSSRC administratively closed the inquiry but reserved the right to commence a compliance inquiry.

[ Nov. 17, 2022 ] Sunrider International: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Sunrider International, a California-based MLM that markets herbal food and beverages, nutritional supplements, and skin care and personal care products, uses atypical earnings claims to market the business opportunity, including the ability to earn significant income and achieve financial freedom, and unsubstantiated health claims to market its products, including the ability to treat cancer, diabetes, high blood pressure, brain injuries, spinal cord injuries, and kidney problems. The DSSRC determined that the company removed all but one of the identified posts and made a good faith effort to remove the claims in the remaining post. As such, the DSSRC administratively closed its inquiry.

[ Nov. 8, 2022 ] Kannaway, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Kannaway, a California-based MLM that sells CBD and wellness products, uses unsubstantiated health claims to market its products, including the ability to treat diabetes, cancer, ADHD, epilepsy, eczema, and psoriasis. The DSSRC determined that the company removed some of the posts, recommended additional steps the company should take to have the remaining posts removed, and stated that it would continue to monitor the claims made by Kannaway and its distributors.

[ November 3, 2022 ] My Lala Leggings, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that My LaLa Leggings, Inc., a California-based MLM that sells clothing, uses atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom and pay bills. The DSSRC determined that the company made a good faith effort to remove the improper claims and administratively closed the case.

[ October 13, 2022 ] Root Wellness a/k/a Root Brands: As part of its compliance monitoring, the DSSRC (Direct Selling Self-Regulatory Council) issued a third case decision finding Root Wellness, a Tennessee-based MLM that markets health and wellness products, continues to use unsubstantiated health claims to market its products, including the ability to treat Alzheimer’s, cancer and diabetes, and distribute press releases with misleading endorsements. The DSSRC determined that the company did not substantively reply to the self-regulatory agency’s compliance inquiry, did not make a good faith effort to address its concerns, and stated it will refer the matter to the FTC and other appropriate government agencies.

[ October 13, 2022 ] Reliv International, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding Reliv International, a Missouri-based MLM that sells nutritional supplements and personal care products, uses unsubstantiated health claims to markets its products, including the ability to treat autism, respiratory issues, and COVID-19, and atypical earnings claims to market the business opportunity, including the ability to earn residual income and achieve financial freedom. The DSSRC determined that the company took actions to modify or remove all but one of the identified posts and made a good faith effort to have the remaining post removed. As such, the DSSRC administratively closed its inquiry.

[ October 13, 2022 ] B-Epic Worldwide LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding B-Epic Worldwide, a Utah-based MLM that markets health, detox and fitness products, uses unsubstantiated health claims to market products, including the ability to treat migraines and anxiety, and atypical earnings claims to market the business opportunity, including the ability to earn significant income. The DSSRC determined that the company removed some but not all of the identified posts and made recommendations for further remedial efforts.

[ October 11, 2022 ] Navan Global: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding Navan Global, a Tennessee-based MLM that markets health and CBD-related products, uses atypical earnings claims to market the business opportunity, including that the ability to earn wealth, and unsubstantiated health claims to market its products, including the ability to treat anxiety, insomnia, and chronic pain. According to the case decision, the company ceased business operations in April 2022. As such, the DSSRC administratively closed its inquiry.

[ October 11, 2022 ] MWR Life, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding MWR Life, a Florida-based MLM that offers discounts on travel services, uses atypical earnings claims to market the business opportunity, including the ability to achieve financial freedom and earn residual income and bonuses. The DSSRC determined that the company removed some but not all of the identified posts and made recommendations for further remedial efforts.

[ October 4, 2022 ] LurraLife Global: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding LurraLife, a Utah-based MLM that sells health and wellness products, uses unsubstantiated health claims to market products, including the ability to treat cardiovascular disease, diabetes, and cancer, and atypical earnings claims to market the business opportunity, including the ability to earn significant income and receive free vacations. According to the case decision, the company ceased its business operations as of July 2022 and several LurraLife distributors joined B-Epic Worldwide LLC. As such, the DSSRC administratively closed its inquiry.

[ October 3, 2022 ] Zilis LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Zilis, a Texas-based MLM that sells wellness products, uses unsubstantiated health claims to market its products, including the ability to treat fibromyalgia, arthritis, diabetes, chronic pain, and depression. The DSSRC determined that the company made a good faith effort to address its concerns and removed the social media posts making the claims at issue.

[ October 3, 2022 ] QuiAri: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding QuiAri, a Florida-based MLM that sells health and wellness products, uses unsubstantiated health claims to market products, including the ability to treat diabetes and COVID-19, and atypical earnings claims to market the business opportunity, including the ability to earn significant income, receive free vacations, and achieve financial freedom. The DSSRC determined that QuiAri removed some but not all of the posts identified and made good faith efforts to remove the remaining posts. The DSSRC closed its investigation and stated that it would continue to monitor other posts disseminated by QuiAri’s salesforce members.

[ September 29, 2022 ] Fifth Avenue Collection, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding Fifth Avenue Collection, a Canada-based MLM that sells jewelry, uses atypical earnings claims, including the ability to earn significant income and achieve financial freedom. The company did not respond to the self-regulatory body and the DSSRC referred the matter to the FTC.

[ August 4, 2022 ] Vyvo, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding Vyvo, a California-based MLM that sells a smart watch, DNA and genetics testing, and nutritional supplements, uses atypical earnings claims to market its business opportunity, including the ability to earn significant income and achieve financial freedom. The company did not respond to the self-regulatory body and the DSSRC referred the matter to the FTC.

[ July 18, 2022 ] Root Wellness: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Root Wellness, a Tennessee-based MLM that sells health and wellness products, continues to use unsubstantiated disease treatment claims to market products, including the ability to treat Alzheimer’s disease, cancer, and diabetes. In addition, the DSSRC found that Root Wellness deceptively references the BBB (Better Business Bureau) and DSA (Direct Selling Association) in press releases without having received recognition, accolades, accreditation, or membership from either one. The company did not substantively reply to the DSSRC’s inquiry and will be referred to an appropriate government agency if it does not show that it made good faith efforts to remove the problematic claims on or before August 5, 2022.

[ July 12, 2022 ] Sanki Global: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Sanki Global, a Japan-based MLM, uses unsubstantiated disease treatment claims to market products, including the ability to treat diabetes, high blood pressure, and migraines, and provide protection from the coronavirus, and atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom, earn residual and passive income, and change their lifestyles. The DSSRC determined that Sanki Global removed some but not all of the posts identified, made recommendations for further remedial efforts, and stated that it would continue to monitor the status of the remaining posts.

[ July 8, 2022 ] Visi: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding Visi, a Utah-based MLM that sells health-related products, uses unsubstantiated health claims to market its products, including the ability to treat osteoporosis, high blood pressure and arthritis. The DSSRC determined that the company removed some but not all of the identified posts and made recommendations for further remedial efforts.

[ July 8, 2022 ] Tranont: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Tranont, a Utah-based MLM that sells health and wellness products, uses atypical earnings claims, including the ability to achieve financial freedom and earn significant income and free luxury vacations, and unsubstantiated disease treatment claims to market products, including the ability to treat cancer, rosacea, and anxiety. The DSSRC determined that Tranont removed some but not all of the claims identified, made recommendations for further remedial efforts, and closed its inquiry based on the company’s good faith efforts to remove the claims at issue and commitment to address the remaining claim.

[ June 30, 2022 ] H2O At Home: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that H2O At Home, a Pennsylvania-based MLM that sells cleaning solutions, uses atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom and replace an income. The company informed the DSSRC that it was closing its business in June. As such, the DSSRC administratively closed its investigation.

[ June 27, 2022 ] Opulence Global: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Opulence Global, a Canada-based MLM that sells skincare and wellness products, uses atypical earnings claims to market its business opportunity, including the ability to build a second revenue stream, and unsubstantiated disease-treatment claims about products, including the ability to prevent COVID. The DSSRC determined that Opulence Global made good faith efforts to remove the claims at issue and closed its investigation.

[ June 23, 2022 ] Financial Education Services, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Financial Education Services, a Michigan-based MLM that markets credit repair services, uses atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom, earn residual income, and be debt-free. During the inquiry, the DSSRC became aware of a pending FTC action against the company and administratively closed its investigation.

[ June 3, 2022 ] Stella & DOT, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Stella & DOT, a California-based MLM that sells jewelry, bags, and women’s clothing, uses atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom. The DSSRC determined that Stella & DOT removed some but not all of the posts identified, made recommendations for further remedial efforts, and stated that it would continue to monitor the status of the remaining posts.

[ June 1, 2022 ] Lifebrook, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Lifebrook, a South Dakota-based MLM that sells juices and supplements, uses unsubstantiated disease-treatment claims about products, including the ability to prevent heart disease and coronavirus, and treat diabetes and cancer. The company informed the DSSRC that it ceased operating as an MLM in March 2022. As such, the DSSRC administratively closed its investigation.

[ May 23, 2022] Financial Education Services, Inc.: The FTC filed a complaint against Financial Education Services, a Michigan-based MLM that markets credit repair services (as well as its owners and related companies) in federal court alleging that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. The next day, the Court temporarily shutdown the credit repair scheme.

[ May 10, 2022 ] My Lala Leggings, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that My Lala Leggings, a California affiliate-based marketing company that sells clothing, uses atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom and earn extra income. The DSSRC determined that My Lala Leggings made good faith efforts to remove the claims at issue, made recommendations for further remedial efforts, and closed its investigation.

[ April 5, 2022 ] Max International, LLC: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Max International, LLC, a Utah-based MLM that sells wellness products, continues to use unsubstantiated disease-treatment claims to market products, including the ability to prevent COVID-19 and other viruses. The DSSRC determined that Max International promptly removed the claims at issue and closed its investigation.

[ April 4, 2022 ] Daxen, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Daxen, a California-based MLM that sells, among other things, dietary supplements, personal care and household products, and cosmetics, uses unsubstantiated disease-treatment claims to market products, including the ability to address COVID-19, Alzheimer’s, cancer and diabetes. The DSSRC determined that Daxen made good faith efforts to remove the claims at issue and closed its investigation.

[ April 4, 2022 ] WorldVentures Marketing: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that WorldVentures, a Texas-based company that sold leisure travel services, used atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom. After contacting the company, the DSSRC determined that WorldVentures ceased its business operations. As such, the DSSRC closed its investigation.

[ Apr. 1, 2022 ] Optavia: A class-action lawsuit was filed in California federal court against the Maryland-based weight-loss MLM Optavia alleging that the company (and its parent company Medifast) use dark patterns to deceptively enroll consumers in an automatic renewal plan.

[ March 28, 2022 ] Tastefully Simple, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Tastefully Simple, a Minnesota-based company that sells meal kits and other prepared food products, uses atypical earnings claims to market its business opportunity, including the ability to earn $500 per month and replace an income. The DSSRC determined that Tastefully Simple made good faith efforts to remove the claims at issue, made recommendations for further remedial efforts, and closed its investigation.

[ March 25, 2022 ] FutureNet, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that FutureNet, a Poland-based company that offers online platforms and networking services, uses atypical earnings claims to market its business opportunity, including the ability to make six figures in six months and achieve financial freedom. The DSSRC was unable to reach the company and referred the matter to the FTC.

[ March 18, 2022 ] Innov8tive Nutrition: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Innov8tive Nutrition, a Washington-based company that sells nutritional supplements in patch form, uses unsubstantiated disease-treatment claims to market products, including the ability to treat skin conditions, attention deficit disorder and COVID-19, and atypical earnings claims to market its business opportunity, including the ability to earn a full-time income. The DSSRC determined that Innov8tive Nutrition made good faith efforts to remove the claims at issue, but said it would continue to monitor claims being disseminated by the company.

[ March 21, 2022 ] Young Living: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision (the first was in February 2020) finding that Young Living, a Utah-based company that sells essential oils and nutritional supplements, continues to use unsubstantiated disease-treatment claims to market products, as evidenced by a distributor video in which she claims Young Living products can prevent, treat and mitigate the symptoms of COVID-19. The DSSRC determined that Young Living had the video at issue removed and closed its investigation. Of note, both DSSRC investigations into Young Living were prompted by TINA.org complaints.

[ February 22, 2022 ] Morinda, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Morinda, a Utah-based company that sells dietary supplements, personal care products and essential oils, uses unsubstantiated disease-treatment claims to market products, including the ability to prevent cancer, diabetes and arthritis, and atypical earnings claims to market its business opportunity, including the ability to achieve financial freedom. The DSSRC determined that Morinda made good faith efforts to remove the claims at issue and closed its investigation.

[ February 9, 2022 ] Mary Kay, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Mary Kay, a Texas-based MLM that sells cosmetics and skincare products, and its distributors continue to use deceptive, atypical and unsubstantiated income claims to market the Mary Kay business opportunity, including the ability to achieve financial freedom and earn a five-figure residual income. The DSSRC determined that Mary Kay made good faith efforts to remove the claims at issue and closed its investigation.

[ January 14, 2022 ] BE Rules, a/k/a BE Factor, f/k/a Melius: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that BE Rules, a Dubai-based company that sells forex and cryptocurrency trading package subscriptions, uses atypical earnings claims to market its business opportunity, including the ability to become rich and achieve financial freedom. The company did not respond to the DSSRC, resulting in a referral to the FTC.

[ January 7, 2022 ] Surge365: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Surge365, an Illinois-based company that sells discounts on hotels, rentals, cruises, flights, and other travel services, uses atypical earnings claims to market its business opportunity, including the ability to earn an unlimited residual income and achieve financial freedom. According to the DSSRC, the company removed several posts at issue. The DSSRC recommended that the company continue to remove any testimonials from its website that could be interpreted as communicating that the typical Surge365 distributor will earn significant, career-level income, and closed its investigation.

[ January 6, 2022 ] Immunotec: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Immunotec, a Canadian company that sells nutritional products and supplements, uses unsubstantiated disease-treatment claims to market its products, including that they can help with infertility, autism, cancer, and pneumonia, among other conditions, and atypical earnings claims to market its business opportunity, including the ability to earn immediate and long-term income. According to the DSSRC, the company removed several posts at issue, prompting the DSSRC to close its investigation.

[ January 5, 2022 ] Le-Vel Brands: The DSSRC (Direct Selling Self-Regulatory Council) issued a second case decision finding that Le-Vel, a Texas-based company that sells health and wellness products, has continued to use unsubstantiated disease-treatment claims to market its products and atypical earnings claims to market its business opportunity. According to the DSSRC, the company removed several posts at issue, prompting the DSSRC to close its second investigation without referral to government regulators. (The DSSRC’s first investigation and report was prompted by a TINA.org complaint.)

[ December 6, 2021 ] Wildtree, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Wildtree, a Rhode Island-based company that sells meals and shakes, uses atypical earnings claims to market its business opportunity, including the ability to earn an unlimited income. In response to the DSSRC inquiry, which is the second time the self-regulatory body investigated the company (the first time was in 2019), Wildtree stated that it is no longer engaged in direct selling and that the income claims identified predated the change in its business structure. As a result, the DSSRC determined that the matter was outside its jurisdiction and stated that it administratively closed the inquiry, despite issuing the case decision.

[ November 29, 2021 ] Dot Dot Smile: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Dot Dot Smile, a California-based company that sells children’s clothing, uses atypical earnings claims to market its business opportunity, including the ability to earn a substantial income and pay bills. The company did not respond to the DSSRC, resulting in the self-regulatory body referring the matter to the FTC.

[ November 23, 2021 ] Jeunesse Global: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Jeunesse Global, a Florida-based MLM that sells beauty and wellness products, uses atypical earnings claims to market its business opportunity, including the ability to earn $100,000 a month. According to the DSSRC, the company removed several posts at issue. The DSSRC closed its investigation and said it would continue to check on the status of a remaining video that was marked private rather than removed.

[ November 11, 2021 ] Daxen, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) issued a case decision finding that Daxen, Inc., a California-based MLM that sells dietary supplements, food and beverage, personal care and household products, uses unsubstantiated disease-treatment claims to market products, including the ability to lower blood pressure, reduce cholesterol, and prevent anemia, cancer, Alzheimer’s, tuberculosis and diabetes, among other medical conditions. According to the DSSRC, the company removed several of the posts at issue, but certain ones remained at the time the investigation was closed. The DSSRC recommended that Daxen take all necessary steps to remove the remaining posts.

[ November 8, 2021 ] dōTERRA: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision regarding the Utah-based essential oils MLM finding that it was again using unsubstantiated health and earnings claims to market its products and business opportunity. This is the second time the DSSRC investigated the company — the first was in 2019-2020 following a TINA.org complaint. This investigation also comes after an FTC warning letter to the company, as well as reviews by the National Advertising Division and the National Advertising Review Board. According to the DSSRC, dōTERRA removed certain deceptive claims but designated some YouTube videos as private rather than remove them from publication. The DSSRC recommended that the videos be disabled in their entirety.

[ October 29, 2021 ] Chalk Couture: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Chalk Couture, a Utah-based MLM that sells do-it-yourself home decor products, uses atypical earnings claims about its business opportunity, including the ability to earn a full-time income, make $2,000 per month in bonuses, and have unlimited earning potential. According to the DSSRC, the company removed several Facebook posts at issue. With respect to improper claims made by distributors who are no longer active, the DSSRC recommended that Chalk Couture make good faith efforts to contact the inactive distributors, as well as contact the platforms (i.e., social media platforms, websites) directly. Finally, with respect to a YouTube video that the company designated as private, the DSSRC recommended that the company disable the video entirely.

[ October 8, 2021 ] Lifebrook, LLC: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Lifebrook, a South Dakota-based MLM that sells juices and supplements, uses unsubstantiated disease-treatment claims about products, including the ability to treat diabetes, arthritis, cataracts and erectile dysfunction, and inappropriate earnings claims about its business opportunity, including the ability to earn unlimited and long-term residual income. Though the company removed most of the claims at issue, the DSSRC recommended that Lifebrook heighten its efforts to remove the remaining problematic social media posts.

[ September 16, 2021 ] Root Wellness, LLC: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Root Wellness, a Tennessee-based MLM that sells health and wellness nutritional supplements, uses unsubstantiated disease-treatment claims about products, including the ability to treat psoriasis, fibromyalgia and arthritis. Though the company removed some claims at issue and provided the DSSRC with publications it argued substantiated its health claims, the DSSRC concluded the evidence provided was not of sufficient reliability to support the problematic claims and determined that Root Wellness should take immediate action to disable the remaining posts at issue.

[ Sep. 3, 2021 ] It Works!: A class-action lawsuit was filed in California federal court against the Florida-based weight loss MLM It Works! alleging that the company is deceptively marketing its Thermofight pill as a safe and effective “thermogenic” fat burner and rapid weight loss solution when it does not work as advertised and is being illegally marketed as an unapproved new drug. The lawsuit also alleges that It Works! deceptively promotes its products using fake Amazon reviews and uses unfair auto-billing methods to charge consumers unauthorized membership fees.

[ August 18, 2021 ] Globallee, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Globallee Inc., a Texas-based MLM that sells various health and wellness supplements, uses unsubstantiated disease-treatment claims about products, including the ability to treat and protect against COVID-19, cancer and diabetes, and inappropriate earnings claims about its business opportunity, including the ability to get on the “fast track to success,” “discover unlimited potential!,” and live a luxurious lifestyle. The company, which has been the subject of previous DSSRC inquiries, removed some but not all of the problematic claims identified. The DSSRC recommended that Globallee take immediate action to remove the remaining claims, and stated that it would refer the matter to the appropriate governmental agencies should it fail to do so.

[ August 12, 2021 ] ByDzyne: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that ByDzyne, an MLM based in Thailand that sells a variety of products, including health and wellness, technology, beauty, and travel products, uses unsubstantiated earnings claims about its business opportunity, including the ability to achieve financial freedom and make a significant income. The company did not respond to the DSSRC, resulting in a referral to the FTC.

[ August 6, 2021 ] Q Sciences: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Q Sciences, a Utah-based MLM that sells a line of health and wellness products, uses unsubstantiated disease-treatment claims about products, including the ability to treat and protect against COVID-19, and inappropriate earnings claims about its business opportunity, including the ability to pay off debt, contribute to retirement and earn a full-time income. The company removed some but not all of the problematic claims identified, and did not substantively participate in the DSSRC’s inquiry. Accordingly, the DSSRC referred the matter to the FTC and the Utah Attorney General.

[ Aug. 2, 2021 ] WorldVentures: A group of former distributors sued the Texas-based MLM WorldVentures, which sells travel-related products, for allegedly operating an illegal pyramid scheme in which the company represented to the plaintiffs that they could make significant money by recruiting others to become WorldVentures “sales representatives” when, in reality, only three percent of distributors make any profit. For more of TINA.org’s coverage of WorldVentures, click here.

[ Aug. 2, 2021 ] Neora (aka Nerium International): A federal district court in Texas determined that the FTC cannot obtain monetary relief in the lawsuit it filed against Neora due to the Supreme Court’s decision in AMG Capital regarding the limits of Section 13(b) of the FTC Act, but that the agency’s lawsuit seeking injunctive relief can proceed. For more of TINA.org’s coverage of Neora, click here.

[ July 27, 2021 ] Limbic Arc, LLC: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Limbic Arc, LLC, a Utah-based MLM that sells a wellness-related technology product, uses unsubstantiated earnings claims about its business opportunity, including the ability to achieve financial freedom and earn a significant income, and unsubstantiated disease-treatment claims about its product, including the ability to treat COVID-19 and fibromyalgia. The DSSRC recommended that the company remove such claims from publication. In response, Limbic Arc stated it is “fully committed to compliance with both the letter and the spirit of all laws and regulations protecting consumers.”

[ July 26, 2021 ] Max International, LLC: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Max International, LLC, a Utah-based MLM that sells a line of health-related and wellness products, uses unsubstantiated disease-treatment claims about products, including the ability to treat and protect against asthma, cancer, and diabetes, among other medical conditions. The DSSRC recommended that the company remove such claims (which were made in social media posts published overseas) from publication, which, according to the DSSRC, the company is working on doing.

[ July 16, 2021 ] Mary Kay, Inc.: Following a TINA.org complaint, the DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Mary Kay, a Texas-based MLM that sells cosmetics and skincare products, and its distributors use deceptive, atypical and unsubstantiated income claims to market the Mary Kay business opportunity, including the ability to achieve financial freedom, earn a replacement income, buy a dream home and earn the iconic Mary Kay pink Cadillac. The DSSRC determined that Mary Kay had removed the vast majority of the claims identified by TINA.org. However, as of the date of the DSSRC’s case report, several deceptive income claims published by Mary Kay and its distributors remain in circulation.

[ July 15, 2021 ] Alliance in Motion Global, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Alliance in Motion Global, Inc., an MLM based in the Philippines that distributes and markets food supplements manufactured by Nature’s Way USA, uses unsubstantiated disease-treatment claims about products, including the ability to prevent COVID-19, and inappropriate earnings claims about its business opportunity, including the ability to become a millionaire and achieve financial freedom. The company failed to respond to the DSSRC resulting in the matter being referred to the FTC.

[ June 16, 2021 ] Blessings in No Time (BINT): The FTC and the state of Arkansas filed a joint complaint against BINT, a Texas-based “blessing loom” investment program company, and its two co-founders alleging that they operate an illegal pyramid scheme that targets African Americans and consumers who were struggling financially during the COVID-19 pandemic. According to the complaint, BINT falsely promised consumers investment returns as high as 800 percent when, in reality, the vast majority of participants have lost money. The FTC and state of Arkansas are seeking a permanent injunction, redress for injured consumers, and civil penalties under Arkansas state law.

[ June 14, 2021 ] Enagic USA: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Enagic USA, Inc., a California-based MLM that sells water purification products, was making unsubstantiated disease-treatment claims about its products, including the ability to prevent eczema and psoriasis, and inappropriate earnings claims about its business opportunity, including the ability to make a substantial income and have a lavish lifestyle. The five claims identified by the DSSRC were removed by the company.

[ June 9, 2021 ] Zinzino: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Zinzino, LLC, a Swedish MLM (with a subsidiary in Florida) that sells supplements and skin care and weight loss products, was claiming its products could prevent COVID-19 and that its business opportunity could provide full-time self-employment and wealth. The DSSRC recommended that the company remove or significantly modify the two posts identified, only one of which had been removed by the time the DSSRC issued its decision.

[ June 3, 2021 ] Aihu: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Aihu, Inc., an Idaho-based MLM that sells essential oil skin care products, was making unsubstantiated disease-treatment claims about its products, including the ability to treat respiratory problems, indigestion, arthritis, and fibromyalgia, among other medical conditions. The DSSRC recommended that the company remove the six posts identified, which the company agreed to do.

[ Apr. 14, 2021 ] Bulavita: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Bulavita (also known as Juuva and formerly known as Wakaya Perfection), an MLM that sells muscadine-based health products, was making unsubstantiated disease-treatment claims about its products, including the ability to prevent COVID-19, and inappropriate earnings claims about its business opportunity, including the ability to make a million dollars a month. The company failed to respond to the DSSRC resulting in the matter being referred to the FTC.

[ March 24, 2021 ] LuLaRoe: The California-based clothing MLM was hit with another class-action lawsuit alleging that it is a pyramid scheme. Specifically, the complaint claims that “LuLaRoe is an unlawful, fraudulent pyramid scheme which preys on stay-at-home mothers, promising them they can generate substantial income while still being able to spend time at home with their families.” The lawsuit seeks to represent all distributors in the U.S. from Jan. 1, 2013 until the present. For more on TINA.org’s coverage of LuLaRoe, click here.

[ Mar. 20, 2021 ] UWell Life, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that UWell Life, Inc., a California-based MLM that sells wellness products, was making unsubstantiated disease-treatment claims, including the ability to protect against the coronavirus. The company failed to respond to the DSSRC resulting in the matter being referred to the FTC, which previously sent the company a warning letter in June 2020 for unlawfully advertising that certain products could prevent or treat COVID-19.

[ Mar. 8, 2021 ] ONEHOPE: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that ONEHOPE, a California-based MLM that sells wine and coffee, was making inappropriate income claims to promote the company’s business opportunity. The company removed some of the ad claims at issue and modified others. The DSSRC was still concerned that the company didn’t address one of the social media posts and recommended that the company make additional modifications to other claims.

[ Feb. 19, 2021 ] RBC Life Sciences, Inc.: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that RBC Life Sciences, a Texas-based MLM that sells nutritional and wellness products, was making inappropriate income claims to promote the company’s business opportunity and unsubstantiated health and efficacy claims to promote the company’s products. The company did not respond to the DSSRC, prompting the DSSRC to refer the matter to the FTC.

[ Feb. 1, 2021 ] LuLaRoe: A couple weeks before trial was scheduled to begin, the state of Washington’s pyramid case against the clothing MLM settled. LuLaRoe agreed to pay $4.75 million, most of which will be used to refund consumers in Washington who were recruited to the company. The consent decree also prohibits LuLaRoe from operating a pyramid scheme and requires the company to publish an income disclosure statement that tells recruits how much they might expect to earn as a distributor with the company. For more of TINA.org’s coverage of LuLaRoe, click here.

[ Jan. 22, 2021 ] Magnetude Jewelry: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision finding that Magnetude Jewelry, a Maryland-based MLM that sells bio-magnetic fashion jewelry, was making inappropriate income claims to promote the company’s business opportunity and unsubstantiated health and efficacy claims to promote the company’s products. While the company made some changes to its deceptive marketing statements, Magnetude Jewelry refused to comply with all of the DSSRC’s recommendations. The DSSRC decision made no mention of an FTC referral.

[ Jan. 20, 2021 ] Young Living: The Utah-based essential oils Multilevel Marketing – a way of distributing products or services in which the distributors earn income from their own retail sales and from retail sales made by their direct and indirect recruits. is now facing a second class-action lawsuit in New York federal court alleging that the company is deceptively labeling and marketing its essential oils as therapeutic for a variety of health conditions in order to charge a premium price for the products. The first class action making similar allegations was filed on Dec. 3, 2020, in Minnesota federal court. For more of TINA.org’s coverage of Young Living, click here.

[ Jan. 20, 2021 ] Primerica: The DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision based on a TINA.org complaint finding that Primerica, a Georgia-based MLM (and Direct Selling Association member) that sells term life insurance and various other financial service products, and its distributors were making inappropriate income claims to promote the company’s business opportunity. The DSSRC determined that the company had removed many of the claims identified by TINA.org from publication and that it should include a disclosure of the income that can be generally expected by the typical distributor if the depicted distributor references financial success that is attributable to the company’s business opportunity. The DSSRC did not address the inadequacy of Primerica’s current income disclosure. For more of TINA.org’s coverage of Primerica, click here.

[ Jan. 7, 2021 ] Gano Excel USA, Inc.: Gano, a California-based Multilevel Marketing – a way of distributing products or services in which the distributors earn income from their own retail sales and from retail sales made by their direct and indirect recruits. that sells drinks and personal care products, was on the receiving end of a DSSRC (Direct Selling Self-Regulatory Council) inquiry, which found “egregious unsupported earnings claims” and “aggressive and unsupported health-related claims,” with several examples directly referencing the COVID-19 pandemic. Because Gano only managed to take down 5 of 17 identified inappropriate claims, the DSSRC said it would continue to monitor the company’s actions and initiate a compliance inquiry if necessary. In addition, while no detail was provided in the text of the DSSRC’s report, the council labeled its inquiry a “Government Referral.”

[ Dec. 21, 2020 ] WorldVentures: The Texas-based Multilevel Marketing – a way of distributing products or services in which the distributors earn income from their own retail sales and from retail sales made by their direct and indirect recruits., which sells travel-related products, filed for Chapter 11 bankruptcy. Debtors include Spherature Investments LLC, Rovia, LLC, WorldVentures Marketing Holdings, LLC, WorldVentures Marketplace, LLC, WorldVentures Marketing, LLC and WorldVentures Services, LLC. Bankruptcy documents indicate that assets and liabilities are estimated between $50 and $100 million, and that there are more than 100 creditors. For more of TINA.org’s coverage of WorldVentures, click here.

[ Dec. 3, 2020 ] Young Living: On the heels of the National Advertising Review Board finding that the Utah-based essential oils Multilevel Marketing – a way of distributing products or services in which the distributors earn income from their own retail sales and from retail sales made by their direct and indirect recruits. company did not have the requisite scientific support to claim that its oils are “therapeutic grade,” the company has been hit with a class-action lawsuit in Minnesota federal court. The lawsuit claims that the MLM is deceptively labeling and marketing its essential oils as therapeutic for a variety of ailments in order to charge a premium price for its products. For more of TINA.org’s coverage of Young Living, click here.

[ Sept. 9, 2020 ] International Markets Live (aka IML and IM Mastery Academy): DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision based on a TINA.org complaint finding that IML and its distributors were making inappropriate income claims to promote the company’s business opportunity. DSSRC recommended that the company “engage in effective training and monitoring of its IBOs (distributors) and use appropriate enforcement procedures to provide reasonable assurance that earnings claims made by its IBOs are substantiated, contain appropriate disclosures and are not misleading.” For more of TINA.org’s coverage of IML, click here.

[ Aug. 31, 2020 ] Le-Vel Brands: DSSRC (Direct Selling Self-Regulatory Council) closed an investigation and issued a case decision based on a TINA.org complaint finding that Le-Vel and its distributors were making inappropriate health claims about the Thrive product line and atypical income claims about the company’s business opportunity. The decision concluded by stating that “DSSRC will continue to monitor the messages disseminated by the Company’s promoters … and will take prompt and necessary steps … should it identify an ongoing proliferation of unsupported product or income claims ….” For more of TINA.org’s coverage of Le-Vel, click here.

[ Aug. 31, 2020 ] Neora (aka Nerium International): Neora’s lawsuit against the FTC, in which the company argued that the commission was attempting to improperly change direct selling laws, was dismissed on Monday. The court found that Neora’s claims were not ripe for adjudication and that it could properly defend itself against allegations that it is a pyramid scheme in the agency’s enforcement action currently pending in Texas federal court. For more of TINA.org’s coverage of Neora, click here.

[ Aug. 28, 2020 ] LuLaRoe: In the state of Washington’s pyramid case against the clothing MLM, the court denied the company’s (and other defendants’) motion for summary judgment on Friday. It also refused to seal or redact exhibits used in support of the state’s opposition to summary judgment. Trial is scheduled to begin on Feb. 16, 2021.

[ Aug. 28, 2020 ] Herbalife: On Friday, the Department of Justice reported that Herbalife had agreed to pay penalties of more than $122 million and admitted that it “knowingly and willfully conspired with others in a scheme to falsify its books and records and provide corrupt payments and benefits to Chinese government officials” in order to obtain, retain and increase its business in China.

[ Aug. 17, 2020 ] Monat Global: Monat entered into an Assurance of Voluntary Compliance (AVC) with the state of Florida on Friday. Pursuant to the AVC, Monat must refund consumers more than $80,000 and pay Florida $250,000. The company is also enjoined from engaging in deceptive marketing, making unauthorized charges on consumers’ bank accounts, making it impossible for consumers to cancel orders, and refusing to provide appropriate refunds, among other things. For more of TINA.org’s coverage of Monat Global, click here.

[ Aug. 5, 2020 ] LuLaRoe: Things are starting to heat up in Washington state’s pyramid scheme case against LuLaRoe, which was originally filed in January 2019. LuLaRoe’s motion for summary judgment is now fully briefed, but the company is fighting to keep about 20 exhibits in support of Washington’s opposition to the summary judgment motion from public view. Among the exhibits currently available for viewing are seven declarations from former LuLaRoe distributors, which contain interesting details about their experiences with the company, such as the fact that six of the distributors went into debt to start their LuLaRoe businesses. For more on TINA.org’s coverage of LuLaRoe, click here.

[ July 29, 2020 ] Herbalife: An appellate court has upheld a district court decision in a class action RICO case against Herbalife and dozens of its top distributors denying distributors’ motion to compel arbitration. The Eleventh Circuit ruled that “[b]ecause none of the top distributors is a party to any of the aggrieved distributors’ agreements, they cannot invoke the agreements’ arbitration clauses.” For more of TINA.org’s coverage of Herbalife, click here.

[ July 27, 2020 ] Neora (aka Nerium International): The FTC scored a small victory in its pyramid scheme lawsuit against Neora on Monday when a New Jersey federal court, in denying Neora’s motion to dismiss the case, held that an earlier lawsuit instituted by Neora against the FTC in Illinois was “filed in bad faith” and raised “improper forum selection concerns.” The court did, however, transfer the FTC’s action to Texas, where Neora is headquartered. For more of TINA.org’s coverage of Neora, click here.

[ July 22, 2020 ] Young Living: SC Johnson & Son challenged a multitude of health and wellness claims being made by Young Living to market its essential oils before the National Advertising Division (NAD). On Wednesday, the self-regulatory body recommended that Young Living discontinue “unsupported, health-related essential oil product claims of ‘therapeutic grade’ and physical and/or mental health benefits, as these claims are unsupported.” Young Living is appealing NAD’s decision to the National Advertising Review Board. For more of TINA.org’s coverage of Young Living, click here.

[ July 9, 2020 ] DSSRC (Direct Selling Self-Regulatory Council): The DSSRC published Guidance on Earnings Claims for the Direct Selling Industry, which it states provides detail on how it reviews and evaluates earnings claims in the MLM industry. The guidance cautions against using phrases such as “financial freedom,” “full-time income,” “replacement income,” “residual income” and “career-level income,” among other things.

[ July 2020 ] DSA (Direct Selling Association): The DSA published its 2019 industry overview. Comparing the data to the associations’ 2018 overview reveal, among other things, that direct retail sales in the U.S. decreased from $35.4 billion in 2018 to $35.2 billion in 2019 while the number of distributors increased from 6.2 million in 2018 to 6.8 million in 2019. For more of TINA.org’s coverage of DSA fact sheets, click here.