FTC SENDS WARNING LETTERS TO MLMs Regarding Health and Earnings Claims


**The FTC sent the letters to the companies listed below.

With the entire world on shut down, it's a scary time.

People are worried about their finances, their health, their friends and family.
Sadly, during this time, some will do whatever they can to profit.
The Federal Trade Commission announced on April, 24th 2020, it sent 10 letters warning multi-level marketing companies (MLMs) to remove and address claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both.


**The FTC sent the letters to the companies listed below.

The recipients are grouped based on the type of claims made.

Both Health and Earnings Claims:
• doTERRA International, LLC
• Pruvit Ventures, Inc.
• Total Life Changes, LLC
• Tranont
• Modere, Inc.
• Arbonne International, LLC

Earnings Claims:
• IDLife, LLC
• It Works Marketing, Inc. (this company was also itself warned to stop making earnings claims)
• Rodan & Fields, LLC

Health Claims:
• Zurvita, Inc.

No offense, but I've never been a fan of MLM's or Direct Sales however, with some you can earn a little income, and yes, some have good products.
Unfortunately, most who try to build an income, with that type of business model, do not make a significant amount of money and with most, the products are over priced with little value compared to the real market place.
Starting a home business can be very appealing to those who find hope in their promises of a better life: freedom, economic independence, and an endless supply of trinket incentives.
It is CRITICAL to know that 99% of people who start a home business in direct sales or in multilevel-marketing (MLM) companies LOSE MONEY! 
If you are someone who is looking for something you can do from home, there ARE ways you can be successful but you need to ask questions to find out if that business is a viable one that is worth your time and effort.

Here are a few questions that you should ask to help you with your search.

  • When did the company start? Avoid start ups or ground floor. Look for stability.
  • Is the company in debt? Debt free shows the company is run by solid management.
  • What are the products/services?
  • Are the products/services something that people actually need? If you have convince someone they need it, odds are they won't buy it.
  • How does the product/services compare in the real market? Quality, Price, Science?
  • How do you earn an income?
  • Is any of the income being earned on the joining fee? (By the way, that has legal ramifications and is not a legitimate way to earn an income.)
  • Are there documented income statistics that show the average incomes of it’s members?
  • What are the companies sales each year since in business?
  • How many members cancel each month? This number should be less than 10%.
  • What is the monthly re-order rate of the customers? Meaning how many that purchased last month, will purchase again the next month. This number should be 95% or more. You need real customers purchasing month after month to build a solid, reliable income.
I hope you found this helpful!

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