Published: November 2017

Consumer advocates keep the heat on multi-level marketing

In 2016, following the FTC's settlement with direct seller Herballife, the commission said it intended to provide additional guidance to the direct selling industry. In anticipation of that guidance, consumer advocates outlined some sound principles that would govern the multilevel marketing industry.

Consumer Action joined the National Consumers League and other groups to urge the Federal Trade Commission (FTC) to ensure that any additional guidance it provides to the "direct selling industry" is consistent with existing case law and previous Commission guidance, addresses the industry’s position regarding internal consumption and reaffirms the need for income and product claims to be substantiated. In 2016, following the FTC's settlement with direct seller Herballife, the commission said it intended to provide additional guidance to the direct selling industry.

Other Organizations

Consumer Federation of America | Consumers Union | Consumer Watchdog | League of United Latin American Citizens | MANA, A National Latina Organization | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low income clients) | National Consumers League | Public Citizen | U.S. PIRG | William W. Keep, PhD, The College of New Jersey School of Business | Peter J. Vander Nat, PhD, Senior Economist (retired), Federal Trade Commission

More Information

See the Federal Trade Commission's Multilevel Marketing page.

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Consumer advocates keep the heat on multi-level marketing   (11_03_2017 - NCL FTC MLM Guidance Letter.pdf)