The Federal Trade Commission announced on Apr. 14 that operators of the multilevel marketing company Forever Living will be permanently barred from making deceptive earnings claims, following allegations that the company misled consumers about potential profits.
The FTC said this action is important because it addresses misleading business practices that can cause individuals to lose money and time by pursuing opportunities with little chance of financial gain. According to the complaint, Forever Living Products International LLC, CEO Gregg Maughan, President Aidan O’Hare, and Forever Living.com LLC attracted new participants—known as Forever Business Owners (FBOs)—with promises of substantial income through selling health and wellness products or recruiting others.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said: “Today’s complaint alleges that Forever Living deceived prospective workers with false and unsubstantiated earnings claims. Forever Living misled workers with promises of substantial income that, in reality, bore little to no resemblance to what participants actually earned. Deceptive earnings claims do not just mislead workers—they divert workers away from genuine, income-generating jobs. The FTC will not hesitate to take action against companies that deceive workers with claims of false earnings that they know few, if any, will achieve.”
The FTC alleged the company used images such as luxury cars and large checks in promotional materials and claimed FBOs could earn enough to replace a full-time job. However, most FBOs did not make any money or lost money after expenses like shipping costs were considered. Company data showed at least 77% of active FBOs received no compensation annually over five years; more than 89% failed to recoup their initial start-up costs after two years.
Additionally, the agency alleged public statements falsely implied everyone had an opportunity for profit when nearly 90% earned nothing. Training materials also encouraged recruits to highlight incentives like cars or travel events as typical outcomes despite less than 7% earning downline commissions.
Under a proposed order settling these allegations—which must be approved by a District Court judge—Forever Living and its executives are required not only to substantiate any future earnings claims but also are prohibited from misrepresenting likely incomes or reasons for participant losses. The Commission vote authorizing staff action was unanimous at 2-0.
