FTC Proposes Rules to Deter Deceptive Earnings Claims by Multilevel Marketers

> While deceptive earnings claims are already illegal, the proposed changes to the FTC’s Business Opportunity Rule and the new Earnings Claim Rule would allow the FTC to seek strong relief – including money back for consumers and civil penalties – from covered companies making deceptive claims.

> The public comment period for all three proposals will last 60 days from when they are published in the Federal Register.

> The Commission votes to approve the issuance of the proposals in the Federal Register were 3-2, with Commissioners Andrew Ferguson and Melissa Holyoak voting no. Commissioner Ferguson issued a dissenting statement joined by Commissioner Holyoak.

> The time for the Biden-Harris FTC to issue or propose new rules ended the morning after the presidential election ... Some of these proposed rules may be in the public interest and within our legal authority. But whether they are lawful, and whether they are prudent and sound policy choices, are decisions that belong to the incoming Trump Administration.