NCL applauds proposed FTC rules on MLM and other business opportunities
Media Contact: Lisa McDonald, Vice President of Communications, (202) 207-2829
Washington, DC – Yesterday, the Federal Trade Commission (FTC) proposed new and updated rules to combat deceptive earnings claims in the multi-level marketing (MLM) industry and, relatedly, business coaching and investment offers. NCL supports the FTC’s rulemakings and urges the incoming Trump Administration to see the initiatives finalized.
“Working to keep Americans from being ripped-off is a bipartisan issue,” said NCL Vice President John Breyault. “We are glad the FTC is stepping up to protect individuals from being led into debt traps with false promises. The incoming Trump Administration should finalize these rules and bring an end to these unfair and deceptive business practices.”
When the FTC voted to begin its rulemaking on earnings claims in 2022, the rulemaking moved forward on a bipartisan, 4-0 vote. The 2022 vote to review the Business Opportunity Rule was also a bipartisan, 4-0 vote. Without finalized rules, it is harder for the FTC to secure financial compensation for victims of deceptive MLMs and other similar firms.
NCL’s joint comments with Consumer Federation of America in response to the 2022 advanced notice of proposed rulemaking on earnings claims can be found here.
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
