The Federal Trade Commission sued Amare Global Holdings Inc. and three of its principals on June 2 for allegedly misrepresenting that its dietary supplements could treat or cure conditions such as depression, anxiety, and ADHD in both children and adults. The complaint also accuses the company of misleading seller recruits about potential earnings as ‘brand partners.’
Amare markets products including Kids Happy Juice, Kids Mood+, and the Happy Juice Product Pack. The FTC alleges that Shawn Talbott, Patrick Hintze, and David Chung are responsible for making false, misleading, and unsubstantiated claims about these products. Talbott and Hintze are already subject to previous FTC orders prohibiting them from making such claims.
“Amare’s claims were not only deceptive but dangerous, since it was aware that some brand partners were taking advantage of parents looking for products to help their children, who suffer from serious conditions like depression and anxiety and need proven treatments,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Companies must make truthful marketing claims and abide by FTC orders, and those that fail to do so will be held accountable by the FTC.”
According to the complaint, Amare distributes its supplements through a network of salespeople participating in a multilevel marketing scheme as ‘brand partners,’ who amplify unsubstantiated health benefit claims on social media platforms such as Instagram, TikTok, YouTube, and Facebook. These include assertions that the products can improve mental health conditions in children and adults or are ‘scientifically backed’ or clinically proven.
The FTC further alleges violations of the FTC Act by claiming without substantiation that Amare’s products can lower cortisol levels; raise serotonin, dopamine or GABA; or cure mental health disorders like depression or ADHD. Additionally, Amare is accused of making deceptive income promises to prospective sellers regarding earning potential regardless of prior experience.
The Commission authorized staff to file the complaint with a 2-0 vote in U.S. District Court for Central District of California. The staff attorneys involved are Christopher Erickson, Abbey Wallace, and Kimberly Nelson from the Bureau of Consumer Protection.