Penalty Offense Authority: MLMs
In an effort to efficiently and effectively address the pervasive problem of multilevel marketing companies using deceptive marketing to promote their business opportunities and sell their wares, TINA.org sent a letter to the FTC urging it to implement a penalty offense program targeting the direct selling industry.
Highlights
- Sent letter and list of more than 660 direct selling companies to FTC
- Sent copy of letter to each of the companies at issue
- FTC sent a Notice of Penalty Offenses to more than 630 MLM companies
Timeline
2021
October 26
The FTC sends a Notice of Penalty Offenses to more than 630 MLM companies regarding income claims, as well as the use of endorsements without properly disclosing material connections.
June 30
TINA.org sends a letter, along with a list of more than 660 direct selling companies, to the FTC urging it to implement a penalty offense program targeting the direct selling industry.
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TINA.org Pushes for New Enforcement Tactic Against MLM Industry
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TINA.org Urges FTC to Initiate Penalty-Offense Program Targeting MLM Industry
MADISON, CONN. June 30, 2021 – Ad watchdog truthinadvertising.org (TINA.org) sent a letter today to the Federal Trade Commission (FTC) urging it to initiate a penalty-offense program targeting the direct…