US FTC bars MLM recruiters from unsubstantiated earnings claims
MLM recruiters must substantiate earnings claims before using them
Change
US FTC filed an order barring senior LifeWave recruiters from making earnings claims without written substantiation and proof on request.
Why it matters
The order restricts earnings claims in MLM recruitment. It covers express and implied claims through lifestyle images, income statements and reasons participants fail to earn. The recruiters must notify downline participants about the order.
Implications
- — MLM recruiters must stop unsubstantiated earnings claims - unsupported income promises breach the FTC order.
- — Marketing teams must remove lifestyle creatives implying likely earnings - homes, vehicles, purchases and travel claims fall inside the order.
- — Distributor-leader teams must notify downline participants about the order - missing notices breach settlement obligations.
Who is affected
- — MLM recruiting teams
- — Marketing and social-media teams at MLM companies
- — Distributor-leader teams at MLM companies