FTC Proposes Rule Changes and New Rule to Deter Deceptive Earnings Claims by Multilevel Marketers and Money-Making Opportunity Sellers

January 14, 2025

Proposed changes to FTC’s Business Opportunity Rule and proposed new Earnings Claim Rule would address false or misleading claims about expected earnings

January 13, 2025

The Federal Trade Commission is seeking comment on proposed changes to the Business Opportunity Rule and a proposed new Earnings Claim Rule that, taken together, would strengthen the agency’s tools to curb deceptive earnings claims in industries where they are pervasive: multi-level marketing (MLM) programs and money-making opportunities.

While deceptive earnings claims are already illegal, the proposed changes to the FTC’s Business Opportunity Rule and the new Earnings Claim Rule would allow the FTC to seek strong relief – including money back for consumers and civil penalties – from covered companies making deceptive claims.

“Phony claims about likely earnings lure people looking for honest income into spending thousands, even tens of thousands, of dollars on multi-level marketing, business coaching and other schemes,” said Sam Levine, Director of the Bureau of Consumer Protection. “The proposed rules would help the FTC deter illegal conduct with civil penalties and put money back in consumers’ pockets. We look forward to getting public comment.”

For full story visit ftc.gov

Leave a Comment

Subscribe
Log In
Social Selling News