MLMs Continue to Recruit with Deceptive Earnings Claims
TINA.org investigation finds 98% of MLMs using misleading income claims.
Smith et al. v. LifeVantage Corp. et al.
18-cv-621, D. Utah
(Jan. 2018)
LifeVantage business opportunity and products, including Protandim supplements
Operating an illegal pyramid scheme that rewards recruiting consultants over retail sales
Making false and misleading income claims about distributors’ ability to earn substantial income and achieve financial freedom when the majority of distributors lose money
Making false and misleading claims about products, including that Protandim can treat or prevent diseases such as cancer and diabetes, and misrepresenting the scientific support and patents for Protandim
Certain claims dismissed by court in 2019 and 2020; remaining claims voluntarily dismissed When a complaint is dismissed with prejudice, it cannot be refiled.
TINA.org investigation finds 98% of MLMs using misleading income claims.
“False dreams of wealth” are touted in an attempt to make up for products that are “snake oil,” complaint alleges.
Pyramid scheme claims against MLM companies on the rise.
Agency warns that “miracle cures” may also contain dangerous ingredients.