The Federal Trade Commission today announced it has sent six letters warning multi-level marketing companies (MLMs) to remove and address claims about their products’ ability to treat or prevent coronavirus 2019 (COVID-19) or about the earnings people who have recently lost income can make, or both. This is the second set of warning letters to MLMs the FTC has announced as part of its ongoing efforts to protect consumers from COVID-19 scams.
The letters highlight specific claims made by the companies or their participants in social media posts and videos posted online, including claims made in Spanish.
The claims addressed in the letters include:
The FTC sent the letters to the companies listed below. The recipients are grouped based on the types of claims made.
Both Health and Earnings Claims:
Isagenix International LLC
The Juice Plus+ Company
Earnings Claims:
Melaleuca, Inc.
Health Claims:
Youngevity International, Inc. (this company was warned about claims in Spanish and English)
Vivri USA, LLC (this company was warned about Spanish-language claims)
Plexus Worldwide, LLC
In letters alleging unsubstantiated health claims, the FTC states that one or more of the efficacy claims made by the companies are unsubstantiated because they are not supported by scientific evidence, and therefore violate the FTC Act. Currently there is no scientific evidence that these, or any, products or services can prevent or treat COVID-19. In letters alleging unsubstantiated earnings claims, the FTC reminds the companies about what constitutes a false or misleading earnings claim that would violate the FTC Act.
The letters refer the companies to the agency’s guidance for MLMs, remind them that they are responsible for the claims made by their participants and representatives, and advise the recipients that they and their participants must immediately cease making all claims that are false or misleading.
The letters also instruct the recipients to notify the FTC within 48 hours about the specific actions they have taken to address the agency’s concerns.
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