The Federal Trade Commission (FTC) has proposed new rule changes aimed at deterring deceptive earnings claims made by multilevel marketers (MLMs) and sellers of money-making opportunities. This initiative includes an expansion of the Business Opportunity Rule to encompass earnings claims related to business coaching and investment opportunities. The FTC's proposals also suggest treating MLM opportunities similarly to other business ventures, which would require substantiation for earnings claims, prohibit non-disclosure agreements commonly used by MLMs, and mandate a waiting period before individuals can pay or join an MLM. Additionally, the Federal Communications Commission (FCC) is addressing aggressive MLM groups that promote unrealistic profit claims. In a related matter, the FCC has identified the 'Green Mirage' scam group, which has impersonated over 400 mortgage institutions using spoofed phone calls.
The FCC says the 'Green Mirage' scammer group has impersonated over 400 mortgage institutions through spoofed phone calls. https://t.co/Ys6RFuTYzG
tremendous news! ftc proposes treating MLM opportunities more like other business opportunities, including requiring substantiation for earnings claims, prohibiting the non-disclosure agreements many MLMs use, & requiring a waiting period before paying or joining the MLM (!!) https://t.co/1P9zjQ20Cc
Today, the FTC announced that it is proposing an expansion the Business Opportunity Rule that would cover earnings claims in connection with "business coaching and investment opportunities." https://t.co/KHhooEEZOL