Federal Trade Commission guidance on direct sellers' compliance with its prohibition against misleading claims, referencing their practices for paying distributors, notes settlements with two dietary supplement marketers as examples for its enforcement policies.
Supplement Sector Settlements Frame FTC Guidance On Direct Sellers' Compensation Claims
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.
