The FTC will return more than $149 million to victims of AdvoCare International, a former multi-level marketer that the FTC says ran a pyramid scheme disguised as a business opportunity and defrauded hundreds of thousands of people who signed up to become its distributors. its health and wellness products.
The FTC sued Texas-based AdvoCare, its former CEO and its main sponsor in 2019, accusing the defendants of deceiving people into believing they could earn unlimited income by becoming resellers with the company, Achieve financial freedom and quit your regular job. In fact, the FTC claims that the vast majority of AdvoCare dealers either make no money or lose money.
According to the lawsuit, AdvoCare’s compensation plan requires dealers to purchase thousands of dollars’ worth of AdvoCare products to be eligible for cash bonuses and other incentives, and compensates dealers in classic pyramid scheme fashion for bringing new employees into the business rather than for selling to customers. product.
To recruit people, the defendants asked dealers to exaggerate how much money the average person made annually — as much as hundreds of thousands or millions of dollars, the FTC said. The FTC alleges that dealers were told to create emotional stories about how they had achieved financial success with AdvoCare and to make potential new employees worry that they would regret it if they refused to invest in AdvoCare.
AdvoCare and its former chief executive are barred from engaging in multi-level marketing under a landmark settlement. AdvoCare is the largest company to have an MLM banned as a result of an FTC enforcement action.
Following the settlement, the Federal Trade Commission (FTC) is making payments to more than 224,000 people who suffered losses as a result of the alleged scam. Payments are distributed via PayPal and checks.
- If you receive a PayPal payment, please accept it within 30 days. If you do not have a PayPal account and would like to receive a check, please call 1-855-744-1802.
- If you receive a check, cash it within 90 days.
- Please visit the AdvoCare Refunds page for more information. If you have questions, please contact Analytics, the refund administrator, at 1-855-744-1802.
- Find answers to frequently asked questions about FTC refund payments Our refund program FAQ page.
One thing to know: Federal Trade Commission no way Requiring people to make a payment or provide account information to get a refund or cash a refund check.
