Advocare Out Of Pyramid Scheme, Into Single-Tier Sales Under FTC Settlement

 
• By Malcolm Spicer

Advocare "is admitting that it operated as a pyramid and they are agreeing to no longer operate in multi-level marketing," says FTC Consumer Protection direct Andrew Smith. Firm is marketing sports, weight-loss and wellness products on a single-tier model with distributors' compensation based on selling directly to end-users.

Advocare Spark energy supplement
FTC says AdvoCare promoted a business opportunity distributing health and wellness products, such as its Spark energy drink, through a network of participants.

More from Compliance

More from Policy & Regulation