Monetary Relief Slim From Dietary Supplement Multi-level Marketer Operating Pyramid Scheme
Federal judge found for FTC on all counts in its complaint against defendants linked to MLM selling Success By Health supplements through affiliates, or independent sales associates. But damages limited to $6,829 for five instances of rejecting consumer requests for refunds after shipping delay.
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Justice Breyer suggests FTC ask Congress to strengthen its enforcement rules. It is “free to ask Congress to grant it further remedial authority,” according to court opinion stating a rule the FTC has wielded for forty years to impose financial penalties doesn’t grant it authority to obtain equitable monetary relief.
Guidance notes settlements Herbalife and Vemma Nutrition made in 2016 as examples of its enforcement policies. FTC prohibition against misleading claims extends to requiring direct sellers to base claims of distributors' compensation on sales to consumers, not on measures such recruiting more distributors.
“MacuHealth believes challenged claims are thoroughly supported by the multitude of peer reviewed, published scientific studies” but NAD review on Vision Elements challenge finds firm’s research doesn’t support its claims.