FTC Announced Proposed New Rules to MLM’s and Money-Making Opportunities

On January 13, 2025, the Federal Trade Commission (“FTC”) introduced some proposed rule changes that could make a big difference for people involved in multi-level marketing (“MLM”) programs or similar business opportunities. The FTC said the new rules are designed to tackle misleading earnings claims—something that’s been a major problem in these industries, where people often get roped into paying big sums of money based on false promises of huge returns. If you’re in an MLM or a related business, this could mean some big changes for how you operate. While misleading earnings claims have always been illegal, these proposed updates are aimed at giving the FTC more power to enforce those rules. This could include fines for businesses that don’t play by the new rules, and potentially even giving consumers a way to get some of their money back if they’ve been misled. Sam Levine, who runs the Bureau of Consumer Protection at the FTC, said these updates are needed because it’s all too easy for people to get tricked into spending thousands of dollars on promises of big rewards that never come.