FTC Network Marketing Update
FTC Network Marketing rules sometimes show a complete lack of understanding as to how the industry works; however, in this case, they are correct. When any company or distributor makes income or health claims, they are breaking the law. When they take advantage of a pandemic, it is immoral.
The FTC sent ten letters to different network marketing companies warning about income and health claims. With the exception of one company (It Works), every violation was made by distributors and not the company.
Below are links to each of the letters below. The recipients are grouped based on the type of claims made. There are some great companies on the list. For example, Arbonne runs a very tight operation. They have the toughest advertising rules in the industry. Distributors can’t create landing pages or make blog posts with the company name. So as you look at each of the letters sent by the FTC, be cognizant of the fact that with the exception of one all the illegal claims were made by reps, not the company.
Both Health and Earnings Claims:
- doTERRA International, LLC
- Pruvit Ventures, Inc.
- Total Life Changes, LLC
- Tranont
- Modere, Inc.
- Arbonne International, LLC
Earnings Claims:
- IDLife, LLC
- It Works Marketing, Inc. (this company was also itself warned to stop making earnings claims)
- Rodan & Fields, LLC
Health Claims:
The FTC stated in the press release they previously sent a number of warning letters about health claims related to the coronavirus pandemic. This is the first time they have sent out warning leters t network marketing comapanies related to the economic fallout from the pandemic.
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