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Are You a Target of the FTC for Your People Luring Money-Making Income Claims? MLM Beware!
On February 17th, 2022 the Federal Trade Commission issued a press release, making it clear they are going to use the Penally Offense Authority, and they are going to launch a rulemaking to challenge false earnings claims by multilevel marketers, for-profit colleges, and “gig economy” platforms. (https://www.ftc.gov/news-events/news/press-releases/2022/02/ftc-takes-action-combat-bogus-money-making-claims-used-lure-people-dead-end-debt-traps)
If finalized, a rule in this area would allow the FTC to recover redress for defrauded consumers, and seek steep penalties against the multilevel marketers, for-profit colleges, “gig economy” platforms, and other bad actors who prey on people’s hopes for economic advancement.
The move, is to try and win back perceived power under sub-section 13b of the FTC Act, which the Supreme Court of the United States ruled unanimously that the FTC never had in the first place. You can read the decision here. (https://www.supremecourt.gov/opinions/20pdf/19-508_l6gn.pdf)
Now the reason this is important is found in how the FTC writes their press release. It gives us the underlying agenda, based on a simple belief they share.
"Consumers, workers, and prospective entrepreneurs are being bombarded with so-called money-making opportunities that promise the world but leave them deeply in debt,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will use every tool in its toolbox to deter this economic exploitation and compensate people who got conned.”
"So-called money-making opportunities.." now there is no doubt, we see scams hitting folks here on YouTube and elsewhere. However, we already have fraud laws in place to combat these frauds.
No, what we see now is the FTC trying to get back their leverage to make an arbitrary decision and to gain control of assets to which they are not entitled.
So what should you do, just to make sure you don't end up in their cross-hairs?
DON"T HYPE YOUR OPPORTUNITY!
Just do things right, and you will not have to be concerned with the Federal Trade Commission or any other regulator.
You also need to make sure you are Protecting The House! When you see others hyping the business or opportunity you are marketing, bring it to the attention of your regulatory affairs or compliance team.
Reach out if you have deeper questions.
#MLM #IncomeClaims #FTC #TroyDooly #MainStreetBusiness
Troy Dooly is an inspirational visionary! He is an Ambassador for Purpose Driven Communications and Wisdom Journalism.
Dooly specializes in Purpose-Inspired Communication, Regulatory Affairs and designing cultures to enhance the customer experience and increase shareholder value, by guiding C-Suite teams and independent sales & marketing organizations as they craft their true message for making a real difference in the lives of the people they serve.
Dooly's articles, videos, and radio shows are some of the most quoted, viewed, downloaded and back-linked across the internet. Dooly is recognized internationally as a thought leader in the areas of communications, leadership values, marketing strategies, and culture development.
The phrase “Living An Epic Adventure” is more than just words to Troy, it is his creed! He is dedicated to showing everyone he comes in contact with that; the Epic Adventure begins when they leave their comfort zone behind!
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