In a June 2026 business blog, the FTC's Labor Task Force reiterated that earnings and lifestyle claims need substantiation, and highlighted recent enforcement against misleading MLM recruiting pitches. Separately, the FTC's January 2025 proposed rules on MLM earnings claims and Business Opportunity Rule changes were still proposals and had not been finalized as of that post.
What the blog says
- In two cases, the FTC alleged that senior participants in separate MLMs used false or baseless earnings claims to recruit, while the companies' own income disclosure statements showed most people made little or no money.
- In its Forever Living case, the FTC alleged deceptive earnings claims were used to attract participants, most of whom made no money or lost money. We covered that order here.
- The FTC and Nevada charged International Markets Live, which the FTC says generated more than $1.2 billion since 2018. The settlement is a judgment of nearly $800 million, partly suspended.
The two rules of thumb
- Any earnings claim has to be about what a typical participant is likely to earn. A handful of top earners does not support the claim.
- Companies can be held liable for their distributors' deceptive claims, and the distributors who make the claims can be liable too.
What the January 2025 proposals would do Per the FTC press release, the proposed Earnings Claim Rule would bar deceptive earnings claims by MLMs and require written substantiation, shared with consumers on request. The FTC also asked for comment on further steps, such as requiring earnings data for recruits, a waiting period before a recruit pays, and limits on gag clauses.
The advice hasn't changed: when hosts or consultants talk about income, stick to typical results and skip top earners' lifestyle posts.
Sources