Fortune Hi-Tech Shutdown Could Intensify Scrutiny Of MLM Businesses

FTC worked with state authorities in an investigation of multilevel marketer Fortune Hi-Tech that led to a court order shutting down the firm. The move brings further negative attention to a sector that has been on the defensive against accusations from activist investors.

A federal complaint alleging a “pyramid scheme” by Fortune Hi-Tech Marketing Inc., a multilevel marketer of goods and services including beauty products and nutritional supplements, could add to consumer skepticism and investor uncertainty regarding the MLM business model.

The Federal Trade Commission worked with Illinois, Kentucky and North Carolina state authorities in an investigation of Lexington, Ky.-based FHTM...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on HBW Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Archive

FTC Consumer Privacy Policy Driven By ‘Straw Man’ Arguments – Commissioner Holyoak

 

The US FTC’s contention that ‘notice and choice’ has failed as the cornerstone of consumer privacy regulation and must be abandoned in favor of data minimization and other more stringent measures does not adequately account for the complexity of business practices and consumer behavior, FTC commissioner Melissa Holyoak asserted at the NAD’s 2024 Annual Conference.

FTC’s New Commissioner ‘Dismayed’ By Agency Overreach

 

FTC Commissioner Melissa Holyoak says the agency has acted outside the bounds afforded by Congress, citing several areas within consumer protection, including a recent update to the final rule for the Health Breach Notification Rule and the commission’s use of notices of penalty offense to serve as the basis for Section 5 settlements. 

Beauty Brands Not On TikTok Shop ‘Really Missing Out’ – KO-Pack

 

At one year, TikTok Shop conjures the early days of Amazon, representing the ‘Wild West’ of beauty ecommerce, said co-founders of private label and contract manufacturing company KO-Pack at the IBA Cosmetics Convergence Fall 2024 Virtual Symposium, “The Promise and Pitfalls of TikTok Shop.”

Final Chance To Have Your Say: Take Our Reader Survey This Week

 
• By 

Editor’s note: This is your final call to participate in the survey to better understand our subscribers’ content and delivery needs. The deadline is 20 September.

More from HBW Insight

Leonard Lauder, ‘Visionary’ Who Grew Estee Lauder Into Global Beauty Powerhouse, Passes At 92

 

The Estee Lauder Companies’ Chairman Emeritus Leonard Lauder, who is credited with growing his family’s firm into a global beauty powerhouse over six decades through the launch and acquisition of iconic brands and expansion into Europe, Asia and the Middle East, passed away 14 June.

Zentiva Strikes Deal With Aboca To Expand CHC Offering

 
• By 

Czech Republic's Zentiva snaps up Aboca portfolio adding supplement brands marketed in European countries such France, Italy and Spain.

German Associations Call For EU Green Claims Directive Trilogue Suspension

 
• By 

Pharma Deutschland is one of 21 German associations calling for trilogue negotiations in relation to the EU Green Claims Directive to be suspended while a “comprehensive and independent written impact assessment” is undertaken.