Regulatory · September 1, 2024 · 🔴 High Impact

The FTC published a landmark staff report in September 2024 analyzing income disclosure statements from 70 MLM companies. Key findings: most disclosures are misleading or confusing, median annual earnings are extremely low (often under $1,000), and most MLM participants lose money after accounting for required purchases. The report found that income disclosures frequently omit expenses, use confusing formats, and make comparisons that exaggerate typical earnings.

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Source: Federal Trade Commission (ftc.gov)