FTC Staff Urge MLMs Not to Rely on Industry Income Disclosure Guidance
Advisory opinion letter raises “serious concerns” with self-reg group’s guidance.
In August 2018, a class-action lawsuit was filed against The General RV Center, Inc., a recreational vehicle dealership, for allegedly using deceptive business practices to sell RVs to consumers, particularly seniors. Specifically, plaintiffs claim that the dealership represents that RVs are brand new 2018 Crossfit vehicles when, according to the complaint, the RVs are defective and have been recalled. The complaint also claims that the dealership tricks consumers into signing a second Purchase Agreement and purchasing an extended service warranty. (Dolores et al v. The General RV Center, Inc., Case No. 18-cv-981, M.D. Fla.)
Advisory opinion letter raises “serious concerns” with self-reg group’s guidance.
Emily Jankowski and Grace Tatter, WBUR | NPR
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