FTC sends $149 million in refunds to individuals harmed in alleged AdvoCare pyramid scheme

The FTC is returning greater than $149 million to individuals who misplaced cash to AdvoCare Worldwide, a former multi-level marketer that the FTC says operated a pyramid scheme disguised as a enterprise alternative and swindled lots of of 1000’s of people that signed as much as be distributors of its health-and-wellness merchandise.

The FTC sued Texas-based AdvoCare, its former CEO, and its high promoters in 2019, alleging the defendants deceived individuals into believing they might earn limitless revenue, attain monetary freedom, and stop their common jobs by turning into distributors for the corporate. In actuality, the FTC alleged, the overwhelming majority of AdvoCare distributors both earned no cash or misplaced cash.

In line with the lawsuit, AdvoCare’s compensation plan required distributors to purchase 1000’s of {dollars}’ price of AdvoCare merchandise to be eligible for money bonuses and different rewards and, in traditional pyramid scheme fashion, compensated the distributors for bringing new recruits into the enterprise, somewhat than for promoting merchandise to clients.

To recruit individuals, the FTC alleged, the defendants instructed distributors to make exaggerated claims about how a lot cash extraordinary individuals might make — as a lot as lots of of 1000’s or hundreds of thousands of {dollars} a 12 months. The FTC alleged that distributors have been instructed to create emotional narratives about how they gained monetary success via AdvoCare and to instill concern in potential recruits that they’d undergo from regrets later in the event that they declined to put money into AdvoCare.

Underneath a landmark settlement, AdvoCare and its former CEO have been banned from multi-level advertising. AdvoCare is the most important firm to be banned from multi-level advertising as a consequence of an FTC legislation enforcement motion.

On account of the settlement, the FTC is sending funds to greater than 224,000 individuals who misplaced cash to the alleged scheme. The funds are being distributed by PayPal and by verify.

• In the event you get a PayPal fee, please settle for it inside 30 days. If you do not have a PayPal account and would like to get a verify, name 1-855-744-1802.
• In the event you get a verify, please money it inside 90 days.
• Go to the AdvoCare Refunds web page for extra data. The refund administrator, Analytics, is on the market at 1-855-744-1802 when you’ve got questions.
• Discover solutions to widespread questions on FTC refund funds on our Refund Program FAQ web page. 

One factor to know: The FTC by no means requires individuals to pay cash or present account data to get a refund or to money a refund verify.