FTC letters target more unproven MLM health and earnings claims

Worried about getting sick with COVID-19 or making ends meet because of a pandemic-related job loss? You may see social media posts offering an answer. Some posts advertise products that they say can prevent or treat COVID-19. Others offer the chance to join a multi-level marketing company (MLM) and make lots of money selling the products to people you know. But, before declaring your worries are over, read on to learn about the problems with these pitches.

Today, the FTC sent warning letters to six MLMs. The letters tell them to immediately stop their distributors from telling people their products can treat or prevent COVID-19, that they’re likely to make significant money if they join the MLM, or both. The FTC says these claims violate truth-in-advertising laws.

The letters are the second set of warning letters relating to COVID-19 that the FTC has issued to MLMs. They require the companies to notify the FTC within 48 hours of the specific actions they have taken to address the agency’s concerns.

According to the FTC, the MLMs’ distributors posted unsupported health and earnings claims on social media sites, with two of the companies posting their ads in Spanish. And, the FTC says, at least one company posted unsupported claims on its own website.

The health-related messages included:

The earnings claims included:

If you’re thinking about joining an MLM, get the details. Start by searching online for the name of the company and words like review, scam, or complaint. Be skeptical of claims that you can earn life-changing income by participating in the program. Most people who join MLMs make little or no money. And, if promoters emphasize recruiting as the real way to make money, walk away.

Visit Multi-Level Marketing Businesses and Pyramid Schemes for more tips about deciding whether an MLM company is right for you.

This content was originally published here.

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