Over $149 million has been handed to victims of the Advocare pyramid fraud, according to the FTC.
The FTC issued the notice on May 5th. It comes after Advocare agreed to a $150 million settlement with the FTC in 2019.
The Federal Trade Commission is reimbursing AdvoCare distributors who lost money as a consequence of the AdvoCare pyramid scam for more than $149 million.
More than 224,000 customers who lost money to the AdvoCare pyramid scheme are receiving reimbursements from the Commission. Checks and PayPal are used to disperse the funds.
Consumers who get PayPal payments should redeem them within 30 days, and those who receive checks should cash them within 90 days of the check’s expiration date.
Victims of advocacy have begun posting on social media that they have received checks.
Advocare is still in business today, although its MLM operations have been discontinued as a result of the FTC settlement. Distributors of Advocare can now only profit from personal sales to customers.
The $150 million was returned as a consequence of Section 13(b) of the FTC Act, as the FTC mentioned at the end of its news release.
In 2021, the United States Supreme Court held that the Commission cannot seek monetary redress in federal court under Section 13(b).
Consumers are getting money back today because of settlements reached before the Supreme Court’s judgment.
In 2021, the Supreme Court ruled in favor of con artists. The AMG judgment effectively barred the FTC from pursuing monetary recovery through the 13th Circuit Court of Appeals (b).
The number of MLM lawsuits brought by the regulator has decreased since the Supreme Court judgment last year. The FTC’s existing MLM regulation has likewise developed into a tangle.
Scammers are currently losing court cases but not getting monetary judgments or penalties. In other words, FTC-targeted MLM scam victims are screwed.
MLM fraud isn’t the only source of harm. FaceBook mentioned AMG lately in an attempt to avoid a $5 billion antitrust lawsuit filed against it.
If Facebook wins, customers will be screwed once more.
These judgments also hinder the FTC’s ability to promptly resolve complaints…
Targets of FTC investigations now routinely argue that they are immune from suit in federal court because they are no longer breaking the law, despite the possibility of recurrence, and they make these arguments even when they stopped breaking the law only after learning that the FTC was looking into them.
The Federal Trade Commission is striving to regain its capacity to prosecute MLM scammers, but progress is slow.