Have you ever joined a multi-level marketing program (MLM) where you sold products to consumers? Or recruited others to do the same? Maybe someone’s pitched you money-making opportunities like business coaching, or another type of business investment? Did they tell you how much money you’d earn — and did those claims add up? Want to tell us more? Here’s your chance (actually, three chances).
The FTC is considering new rules aimed at curbing false earnings claims by promoters of MLMs and money-making opportunities — and we want to hear from you about these proposed rules. Will the proposals help the FTC protect you? Would they discourage illegal behavior by businesses? What changes would help? Here’s how to participate:
- One proposed rule would make it illegal for money-making opportunities (like business coaching or investment opportunities) to misrepresent earnings. To comment, check out the proposed rule.
- Another proposed rule would prohibit MLMs from misrepresenting earnings to potential participants. It would also require MLMs to back up earnings claims with information — in writing — upon request. To comment, check out the proposed rule.
- The third is a chance to weigh in on whether the FTC should propose additional rule requirements for the MLM industry — like requiring MLMs to provide information about typical earnings whenever they make earnings claims, or imposing a waiting period before recruits can join or pay any money to the MLM. To comment, check out the advance notice of proposed rulemaking.
It’s easy to share your ideas online. Your practical, real-world insights about these FTC proposals will help make sure the rules work for people. You’ll have 60 days to review and comment on each proposal on Regulations.gov. That 60-day period starts from the date the proposals are published in the Federal Register — check back for the link when it’s live. We hope you’ll weigh in.