![]() The suit, filed in federal court, alleges that a vast majority of distributors for the company, which earned $719 million in net revenues in 2015, are doomed to lose money rather than achieve large incomes touted by top-level affiliates. Our original post published in March 2017 follows.ĪdvoCare International, a Texas-based nutritional supplement MLM with high-profile athletic endorsers, is facing pyramid scheme and racketeering allegations in a class-action lawsuit filed by two former distributors. UPDATE 8/5/19: After a federal judge dismissed plaintiffs’ racketeering allegations in July 2019, they filed an amended complaint similarly alleging that AdvoCare operated a pyramid scheme prior to July 2019.īack in May 2019, following discussions with the FTC, AdvoCare announced that it would be changing its business model from multilevel marketing to a single-level distributor model with a compensation plan “based solely on sales to direct consumers,” effective July 17, 2019. Business structure encourages inventory loading.Primary incentive for compensation is through recruitment.
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