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 Notice of Penalty Offenses to hundreds of MLM companies

Timeline

2021
October 26

The FTC sends a Notice of Penalty Offenses to more than 1,100 companies that pitch money-making ventures (a majority of which are 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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