In its judgment, the FTC argued that AdvoCare “falsely claimed to propose a life-changing financial solution, which would allow any ordinary person to earn unlimited income, obtain financial freedom and give up his or her regular employment. In fact, the vast majority of AdvoCare distributors have not earned money or lost money. Multi-level distributor AdvoCare International, L.P., and its former ceo agreed to pay $150 million and be excluded from multi-level marketing activities to resolve federal trade commission accusations that the company exploited an illegal pyramid scheme that misled consumers into thinking they could earn significant revenue as “resellers” of their health and wellness products. Two proponents also raised allegations that they encouraged the illegal pyramid scheme and misled consumers about their revenue potential by agreeing to a multi-step marketing ban and a $4 million judgment that would be suspended if they abandoned significant assets. At AdvoCare, we build champions®. Supported by the most credible scientific research and the internationally recognized scientific and medical committee, AdvoCare offers first-class nutritional, weight management and athletic performance products. AdvoCare is a family-owned business founded in 1993, headquartered in Plano, Texas. For more information about AdvoCare, see advocare.com. In fact, according to the FTC, the vast majority of AdvoCare distributors did not earn money or lose money. In fact, according to the FTC, AdvoCare does not offer consumers a viable path to financial freedom. In 2016, 72.3% of distributors were not compensated by AdvoCare; 18 percent more earned between one cent and 250 U.S. dollars; and 6 percent earned between $250 and $1000. The annual distribution of results was virtually identical for the period 2012-2015.

“We absolutely disagree with the FTC`s accusations, but we are committed to sticking to this agreement and moving forward. The strength of AdvoCare is and remains our highly valued health and wellness products, which remain in high demand by our hundreds of thousands of loyal customers,” said Patrick Wright, CEO of AdvoCare. We will continue to be behind our distributors, employees and customers, and we will maintain our values of integrity and transparency, as we have done for more than 25 years. How much does an AdvoCare distributor make in this regard? In the end, the distribution strategy changed and the company harmed many of the regular full-time distributors who allowed some dual-income families to leave work without warning. They were preaching about loyalty, I don`t want to engage with a company that would do that to its best consultants. The FTC stated that, as part of AdvoCare`s compensation plan, 59$US were billed to participants to become a distributor, allowing them to obtain product discounts and sell products to the public. However, to earn all kinds of compensation, participants had to become “consultants,” which usually required them to spend between $1,200 and $2,400 on AdvoCare products and to raise thousands of dollars in product volume each year, according to the complaint. The FTC stated that AdvoCare`s consultants` revenues were based on their recruitment success, with the highest rewards being awarded to those who recruited the largest number of consultants and generated the largest purchase volume of their downline. The FTC said advoCare, based in Texas, has encouraged a business opportunity for the distribution of health and wellness products like its Spark Energy beverage through a network of hundreds of thousands of participants known in the company as distributors. AdvoCare has taken advantage of its business opportunities through conferences, webinars, conference calls, podcasts, social media contributions, videos and print materials, as the FTC complaint states.