The Federal Trade Commission announced on Apr. 13 that it is taking action against Stormy Wellington, a high-level participant in two multilevel marketing companies, for allegedly using false or unsubstantiated earnings claims to recruit workers. The FTC said most people recruited did not earn any money from the ventures.
The case highlights concerns about misleading income promises in the multilevel marketing industry and aims to protect workers from deceptive recruitment tactics.
According to the FTC's complaint, Wellington was involved with Total Life Changes (TLC) and later Farmasi, where she allegedly promoted significant earning opportunities through social media posts and videos. In one example cited by the FTC, Wellington claimed on Facebook that she would help "1000 families make 5-7 figures in the next 90 days to 12 months!" She also told potential recruits at Farmasi that they could expect "no less than six figures" and promised to make "60 new millionaires in 2026."
Despite these statements, company disclosures showed most participants earned little or no money. TLC reported that nearly 77% of active participants received no compensation in calendar year 2023, while only a small fraction earned more than $5,000. Similarly, fewer than one percent of Farmasi's active participants made six-figure incomes during the same period.
A proposed order settling the allegations will prohibit Wellington from misrepresenting potential earnings or assisting others in doing so for business ventures. She will also be required to provide written substantiation for any future income claims and notify her downline about these restrictions.
The Commission voted unanimously to authorize staff to file both the complaint and final order with the U.S. District Court for the Southern District of Florida.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection said: “Today’s actions make clear that the FTC will go after individuals who deceive consumers trying to earn a living.” He added: “This case highlights the FTC’s ongoing efforts to protect workers from recruiters who misrepresent potential earnings.”
The lead staff on this matter include Claire Wack and Melissa Dickey of the Bureau of Consumer Protection.
