MLMs Are Consistently Leaving Participants Behind
New book explores why MLMs are often associated with harmful outcomes – and what can be done about it.
August 2017: A federal judge granted final approval of the settlement.
March 2016: A federal judge preliminarily approved a settlement agreement in a false advertising class-action lawsuit against i-Health, Inc. The complaint, which was originally filed in 2012 and amended in 2014, alleges that the company markets BrainStrong dietary supplements with DHA algal oil – including BrainStrong Toddler, BrainStrong Kids, and BrainStrong Adult – as supporting brain health and function when such claims are not true and not supported by adequate scientific evidence.
According to the settlement terms, class members with proof of purchase stating the actual price paid may receive a full refund while class members with proof of purchase that does not state the price paid may receive a refund of the average purchase price. Class members without proof of purchase may only receive a $4 cash award or $6.50 voucher. In addition, the company discontinued the BrainStrong products after the filing of this action and agreed not to sell BrainStrong products unless representations about the health benefits, performance, safety, or efficacy of the products are supported by scientific evidence.
The final fairness hearing is scheduled for May 19, 2017. (Jovel et al v. i-Health, Inc., Case No. 12-cv-5614, E. D. NY.)
For more information about products claiming to support brain health and TINA.org’s coverage of them, click here.
New book explores why MLMs are often associated with harmful outcomes – and what can be done about it.
Marketing and reality are not in sync.
New study opens the floodgates to class-action litigation.
Agency alleges MLM misled recruits about earnings, pressured distributors to buy products and encouraged fake retail sales.
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