MLMs Continue to Recruit with Deceptive Earnings Claims
TINA.org investigation finds 98% of MLMs using misleading income claims.
April 2018: Following the March 2018 settlement agreement and resulting dismissal, plaintiffs filed a notice of dismissal indicating that they would be dismissing the case with prejudice.
March 2018: This case was dismissed When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled. because the parties reached a settlement agreement, the terms of which have not been disclosed.
October 2017: Even though the case was stayed, a federal judge allowed plaintiffs to file an amended complaint making similar allegations.
July 2017: This case was transferred to federal court. (Case No. 17-cv-1214, C.D. Cal.) Later in July, the case was stayed pending the determination of whether the claims need to be resolved in arbitration.
May 2017: A class-action lawsuit was filed against Arbonne International, a multi-level marketing company that sells health and beauty products, as well as five top Arbonne consultants, alleging that:
(Dagnall et al v. Arbonne International, LLC et al, Case No. 30-2017-00922926, Superior Court of the State of California – Orange County)
For more information about other class-action lawsuits regarding pyramid schemes and TINA.org’s coverage of the topic, click here.
TINA.org investigation finds 98% of MLMs using misleading income claims.
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Why the MLM industry should avoid the term.
Deceptive earnings claims edition.
More than 97 percent of DSA member companies use or have used misleading income claims.