Consumer Alert
FTC says “Success By Health” is a pyramid scheme
Earn UNLIMITED income! Quit your job! Change your life!
Do we have your attention? Good! Are you rolling your eyes? Even better. That means you’ve heard warnings about illegal pyramid schemes that masquerade as legitimate multi-level marketing (MLM) businesses and promise life-changing income, but take your money instead.
The FTC’s latest case charging a company with operating a pyramid scheme concerns “Success By Health” (SBH), a venture that the FTC alleges has bilked consumers who joined its sales network as “Affiliates” out of more than $7 million.
According to the FTC, SBH tells consumers they can replace their job income in six months and gain “financial freedom” in 18 months by selling its coffee, tea, and dietary supplements and recruiting other people to do the same. In reality, the FTC says, the vast majority of SBH Affiliates pay SBH more than they earn.
The complaint alleges that SBH pushes Affiliates to max out their credit cards, borrow from family, get bank loans, and sell or mortgage their homes to buy inventory and attend costly “training” programs. But, according to the FTC, the amount Affiliates earn is based on how many new Affiliates they recruit and how much inventory they and their recruits buy, not on their sales of SBH products to retail customers.
At the FTC’s request, a federal court has ordered SBH to halt its allegedly unlawful activities while the case is pending.
If you’re planning to buy into an MLM plan, get the details. Start by searching online for the name of the company and words like review, scam, or complaint. Be skeptical of portrayals of lavish lifestyles made possible by participating in the program. And, if promoters emphasize recruiting as the real way to make money, head for the nearest exit. That’s a hallmark of a pyramid scheme.
For more tips about avoiding a bad business deal, visit Multi-Level Marketing Businesses and Pyramid Schemes.
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January 16, 2020
There is pie in the sky but how do you get your share so far away?
January 16, 2020
This is so important to have consumers be aware of these types of schemes! I've come across many that promise greater income but my gut instincts always are on point! If it seems to good to be true, 99.99% it is... just RUN! Thank you FTC for always keeping consumers on alert!
February 03, 2020
Amazing...after reading this article, what happened to due process? This article immediately gives the perception of schemes and lies. Why not hear from the “affiliates” who supposedly got scammed and their perception of this company? Why not hear their stories of success or failure prior to the company being shut down? How about allowing their perception for due process? Maybe just maybe, some “affiliates” don’t focus on just recruiting, but actual retail sales? Maybe just maybe, some “affiliates” have been able to walk away from their jobs and replace their income or better yet, maybe some “affiliates” have been able to make residual income to pay an extra bill? How about hearing all the facts before placing judgment? What about the actual products that were being sold and people’s testimonies on the products? I read no “dispute” from the FTC in the 41 page complaint about the products being a scam.