One of the most important features of a non-deceptive income claim is that it is supported by unbiased data. And in recent years, the FTC has repeatedly emphasized that representations about income opportunities should reflect the earnings of a typical distributor.
The FTC expressed interest in requiring companies to provide substantiated earnings claims without hyperbole or the use of hypothetical or past profits to consumers, and is considering whether lifestyle claims could be addressed in this rule as well.
In a statement this week, the Direct Selling Association (DSA) expressed its continued support of the efforts made by the Federal Trade Commission (FTC) to stop false product claims connected to the COVID-19 virus.
In these Notice of Penalty Offenses, the FTC highlighted the use of social media, which they believe has “blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace.”
The Direct Selling Self-Regulatory Council (DSSRC) of the BBB National Programs has referred Q Sciences to the Federal Trade Commission (FTC) and the Utah Attorney General’s Office for possible enforcement action. This referral comes after Q Sciences failed to adequately respond to the DSSRC’s concern about certain earnings and health-related product performance claims made by the company, which distributes and markets health-related and wellness products.
Following the Supreme Court’s unanimous ruling that the FTC had been incorrectly wielding its power concerning Section 13(b) of the FTC Act, it appeared that the FTC’s power to inflict monetary damages without first subjecting themselves to the administrative processes found in Section 5 of the FTC Act would be limited.
This new change will allow informal hearing procedures and eliminate the current rules that are not articulated in the FTC Act—like the publication of a staff report that contains a rulemaking and recommendations record for public comment—but maintain that these updated procedures will offer extensive opportunities for public comment.
The advertising watchdog group TruthInAdvertising.org (TINA) sent a letter yesterday to the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), requesting that the FTC “implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.” The letter […]
The Direct Selling Association (DSA) released an official statement following an announcement by the Federal Trade Commission (FTC) and the state of Arkansas that accuses Blessing Loom of being a pyramid scheme. In its statement, the DSA said the situation “highlights the value of and need for strong anti-pyramid laws and enforcement.”
The Federal Trade Commission (FTC) announced in a Statement of Commissioner Rohit Chopra that it will begin looking for other methods to seek restitution or disgorgement from companies in the wake of the U.S. Supreme Court ruling that the Commission could not do so using Section 13(b) of the FTC Act.
Companies utilizing the negative option feature should take note: the FTC has found a new avenue for obtaining monetary relief.
As President of DSA, it is my job to evaluate and report on cases like the recent Federal Trade Commission announcement regarding AdvoCare dispassionately and to analyze the impact on the direct selling channel and assist our members in charting a course forward. Nonetheless, it is difficult for me to believe the investigators got all […]