CRITICALNutrition / SupplementsFTC Cases-Proceeding · May 5, 2022

AdvoCare International, L.P.

Atlas ID: 2022-05-ftc-advocare-international-l-p-1lnefr

AdvoCare International, L.P., a multi-level marketer of health and wellness products, and its former CEO agreed to pay $150 million and accept a permanent ban from the MLM business to resolve FTC charges that the company operated an illegal pyramid scheme. The FTC alleged AdvoCare deceived consumers into believing they could earn significant income as distributors of its health and wellness products. Two top promoters also settled related charges, agreeing to an MLM ban and a $4 million judgment (suspended upon surrender of substantial assets). The enforcement action targeted deceptive income opportunity claims tied to the distribution of nutrition and wellness products.

Flagged claims (1)

deceived consumers into believing that they could earn significant income as "distributors" of its health and wellness products

Unsubstantiated efficacy · false-income-opportunity-claim

Required actions (4)

agreed to pay $150 million and be banned from the multi-level marketing business to resolve Federal Trade Commission charges

Civil penalty · $150M

be banned from the multi-level marketing business

Injunction

agreeing to a multi-level marketing ban and a judgment of $4 million that will be suspended when they surrender substantial assets

Civil penalty · $4M

a multi-level marketing ban

Injunction

Source

www.ftc.gov · FTC Cases-Proceeding

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