FTC Pressed To Crack Down On Multilevel Marketers

Law360, Chicago (October 25, 2013, 5:24 PM EDT) -- A coalition of consumer advocates and former distributors on Thursday petitioned the Federal Trade Commission to rein in the multilevel marketing industry, which includes companies like Amway Corp. and supplement distributor Herbalife Ltd., saying its practices have heaped "untold financial harm and misery" on consumers.

The petition — signed by the group's attorney, Concord, Mass.-based Douglas M. Brooks — said the industry has proven it can't regulate itself and asked the FTC to launch an investigation. The group also proposed new regulations banning certain practices and...
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