FTC Proposes New Rule Targeting Deceptive Income Claims in MLM Industry
Proposed new earnings claim rule comes three years after TINA.org comment to FTC.
October 2019: Plaintiffs filed an amended complaint, which was then voluntarily dismissed When a complaint is dismissed with prejudice, it cannot be refiled., the reasons for which have not been disclosed.
April 2019: The named plaintiff voluntarily dismissed his claims When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled., the reasons for which have not been disclosed. Later in April, the same named plaintiff filed another complaint bringing similar allegations. (Okoe et al v. Parfums De Coeur, Ltd., Case No. 19-cv-602, D. Conn.)
December 2018: A class-action lawsuit was filed against Parfums De Coeur for allegedly misleadingly marketing that soaking in Dr. Teal’s Epsom Salt baths will relieve muscle pain and soreness when, according to plaintiffs, it is “biologically impossible” for enough of the magnesium in the salt to penetrate the body to relieve soreness. The complaint also claims that the company deceptively represents that one of its Epsom salts will “Detoxify” when, according to plaintiffs, Epsom salt cannot provide detoxification, which is a medical treatment used for dangerous levels of drugs or alcohol in the body. (Okoe et al v. Parfums De Coeur, Ltd., Case No. 18-cv-1979, D. Conn.)
Proposed new earnings claim rule comes three years after TINA.org comment to FTC.
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