Direct Seller Neora Pushes Back On FTC Pyramid Scheme, False Claims Complaint

Firm says "we refuse to be bullied into a settlement" and FTC conflates legal MLMs with pyramid schemes by alleging every MLM paying incentives "for recruitment of participants” is a pyramid scheme. Separate firm supplying ingredient for brain health supplement agreed to settlement of FTC false ad complaint.

Neora Wellness
Neora, which markets namesake brand supplements and skin care products, includes at multiple points on its webisite the disclaimer that it "does not guarantee any level of income for any" distributor.

The Federal Trade Commission pushes two of its hot buttons in a complaint alleging dietary supplement and beauty product direct seller Neora LLC operates a pyramid scheme and makes false advertising claims for cognitive benefits.

The firm says it "does not guarantee any level of income," but the FTC alleges in a complaint filed 1 November that the firm "falsely promises" distributors "financial independence

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 Compliance

Third-Party ‘Testing, Inspection and Certification’ Cleaning Up Amazon Supplement Market

 

Three FDA warnings related to supplement manufacturing, labeling or marketing submitted to Amazon or companies selling vitamin, mineral or supplement products on its e-commerce platform since April 2024.

Accelerating Natural Options Among US FDA’s Steps For Removing Petroleum-Based Food Dyes

 

HHS Secretary Kennedy commends food companies for cooperating, but also says, “We have them on the run now and we are going to win this battle. And four years from now, we're going to have most of these products off the market.”

Deleting Self-Affirmed GRAS Option Could Stretch FDA’s Already Thin Food Safety Resources

 

FDA introduced the option because it didn’t have sufficient staff to handle the volume of GRAS submission reviews requested by food and other firms for ingredients. Requiring submissions for all GRAS determinations “would just be an unworkable situation for the food industry if somehow submitting notice, submitting notices for FDA review and concurrence, was required,” says food and drug attorney Federick Stearns.

Traceability Rule Compliance Extended For Providers Of Herbals, Other Food Ingredients

 

FDA says “extension affords covered entities the additional time necessary to ensure complete coordination across the supply chain in order to fully implement the final rule’s requirements—ultimately providing FDA and consumers with greater transparency and food safety.”

More from Policy & Regulation

Digital Services Deliver Hemp, States Deliver Regulation With Congress Yet To Act

 

Four months into session, no bills have been introduced in Congress to authorize FDA to establish a regulatory pathway for the lawful use of hemp ingredients in products other than drugs or propose some other solution to the federal conundrum present since lawmakers in 2018 de-scheduled hemp.

Little Industry Opposition To FDA Plan To Remove Synthetic Dyes, Or Agreement They’re Unsafe

 

Dyes and colors which FDA says industries agree should no longer be used aren’t unsafe and are currently used only with the agency’s approval, industry stakeholders say. Center for Science in the Public Interest says the dyes are used “in tens of thousands of foods and beverages that are commonly consumed here in the United States.”

Bayer Study: Self-Care Is Hardest For Those Who Need It Most

 
• By 

Being poor makes it more likely that you will suffer from self-treatable health conditions but it also means you will find it harder to take advantage of self-care solutions, finds a recently-published study by Bayer Consumer Health and IQVIA.