The FTC sent warning letters to ten multi-level marketing companies regarding unsubstantiated claims that they or their participants are making about their products’ ability to treat or prevent coronavirus, and/or for making unsubstantiated earnings claims in the COVID-19 era. This was the first set of warning letters the agency sent that targeted companies making claims about potential earnings related to the economic fallout from the pandemic. The letters highlighted specific claims made by the companies or their distributors in social media posts and online videos. The companies that received letters are:
The FTC also sent twenty-one other companies warning letters regarding unsubstantiated coronavirus treatment or prevention claims. This marks the third batch of letters the agency has sent as part of its efforts to protect consumers from COVID-19-related scams. The letters addressed a wide range of products, such as acupuncture, intravenous (IV) therapies, ozone therapy and purported stem cell treatments.
The letters required that the companies immediately cease making all claims that are false or misleading, and reminded them that they are responsible for the claims made by their members and representatives. Recipients of the letters were required to notify the FTC within 48 hours of the specific actions taken to address the agency’s concerns, or be subject to potential enforcement action.