A new study from Truth in Advertising (TINA), claims 98% of studied MLM companies are using misleading income claims.
In other words, of the hundred MLM companies TINA studies, 98 percent are openly violating the FTC Act.
MLM companies in
TINA’s study
were mostly pooled from the US Direct Selling Association.
Noting DSA membership had declined from 140 companies to 93 over the past 6 years, TINA added
Exp Realty
, Tupperware,
LegalShield
,
Pruvit
,
doTerra
,
Monat Global
and
Vida Divina
.
TINA.org investigated the 100 companies and found that 98 percent were making misleading income representations in 2023.
TINA.org has collected more than 2,000 examples dating from 2018 to the present of companies and/or their distributors making inappropriate earnings claims on their websites and social media platforms.
This, despite the fact that DSA President Joseph Mariano was quoted in 2019 as stating, “Anyone who’s saying that you’re going to make a lot of money [with an MLM] is not telling the truth.”
One sticking point of the study is TINA challenging the DSA on its claim that “illegal earnings claims used to market MLM companies are few and far between.”
TINA has shared its finding with the DSA and the DSSRC, the DSA’s funded self-regulatory program.
In light of its findings, TINA suggests DSSRC’s “resources and/or tactics for finding [illegal earning] claims are lacking.”
🤖 Quick Answer
What did TINA's study reveal about income claims in MLM companies?Truth in Advertising (TINA) investigated 100 MLM companies and found that 98% were making misleading income representations in 2023, thereby violating the FTC Act. The organization collected over 2,000 examples dating from 2018 onwards of companies and their distributors making inappropriate earnings claims on their websites.
Which MLM companies were included in TINA's research sample?
The study primarily pooled companies from the US Direct Selling Association, which declined from 140 to 93 members over six years. TINA supplemented the sample by adding Exp Realty, Tupperware, LegalShield, Pruvit, doTerra, Monat Global, and Vida Divina to reach a total of 100 companies for investigation.
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