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Health Company Touted by Sports Stars Ran Pyramid Scheme, F.T.C. Says

Submitted by jhartgen@abi.org on

N.F.L. star quarterback Drew Brees called it a “rewarding” opportunity, a chance to market health products trusted by thousands of people. Former President George W. Bush spoke at a sales conference in Texas designed to tout its “economic value.” But there was more to the nutritional supplement provider and multilevel marketing business operated by AdvoCare International. AdvoCare yesterday agreed to pay $150 million to settle charges by the Federal Trade Commission that it operated an illegal pyramid scheme that deceived customers into thinking they could earn significant income as distributors of its products, the New York Times reported. In addition to the financial settlement, the Texas-based company will be banned from the multilevel marketing business. For years, AdvoCare recruited hundreds of thousands of consumers across the country to market its health products, promising “the average person a financial solution that will enable them to earn unlimited income,” the F.T.C. wrote in a complaint filed yesterday in federal court in Texas.

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