Fraud

CFA, Public Interest Groups Call on FTC to Protect Consumers from Pyramid Schemes

In a letter to Federal Trade Commission (FTC) Acting Chairman Maureen Ohlhausen and Commissioner Terrell McSweeny, CFA and other public interest groups are calling on the FTC to ensure that any additional guidance it provides to the direct selling industry is consistent with existing case
law and previous Commission guidance, addresses the industry’s position regarding internal consumption, and reaffirms the need for income and product claims to be substantiated. Anything less will not adequately protect consumers from deceptive multi-level marketing (“MLM”) companies.

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