Remaining litigation may be determined by threats to the Federal Trade Commission’s (FTC) enforcement ability
By John E. Villafranco
If (the McDaniels) were to prevail…they potentially could resolve their litigation with the FTC without an injunction that prohibits them from participating in MLM activities. They may also not have to pay any money at all.
No other court has aligned with the Seventh Circuit thus far in curtailing the FTC’s enforcement authority by foreclosing its ability to obtain restitution.
At the press conference announcing the AdvoCare settlement, FTC Bureau Director Andrew Smith commented on the consent’s ban on multi-level marketing but noted that “every case is different.” He pointed to the Herbalife consent order, by way of example, and stated that the company did not agree to abandon multi-level marketing altogether but instead agreed to certain protections that the FTC believed addressed consumer harm.