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Posted May 9, 2022

$149 Million in Refunds from AdvoCare Settlement

On May 5, 2022, the FTC announced it will be returning more than $149 million to individuals who sold AdvoCare supplements as distributors through the company’s multi-level-marketing (MLM) plan.

The money to be returned is the result of an agreement to settle FTC charges that the company operated an illegal pyramid scheme, encouraging distributors to focus on recruiting other distributors rather than selling products, and incentivized the purchase of large quantities of the company’s products when distributors were unable to make sales.

According to the FTC, the company told distributors to make exaggerated claims regarding the amount of income an individual could make selling AdvoCare products —as much as millions of dollars per year. The FTC alleged that most distributors, instead of making unlimited income, earned no money or lost income.

The agency is sending payments to over 224,000 consumers who lost money to the AdvoCare pyramid scheme via check or PayPal. Recipients who have questions about their refund should call the refund administrator, Analytics, at 855-744-1802.

In 2021, the U.S. Supreme Court ruled that the FTC lacks authority to seek monetary relief in federal court. However, the money being sent to distributors is part of settlements made prior to this ruling.

Use of AdvoCare's Spark energy drink was associated with the development of an unusual type of kidney stone in three individuals who consumed several servings daily for a year or more (see the Concerns and Cautions section of the Choline Supplements Review for details).

For more information, use the link below.

Federal Trade Commission Returns More Than $149 Million To Consumers Harmed by AdvoCare Pyramid Scheme

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Advocare to Pay $150 Million to Settle Charges of Operating a Pyramid Scheme

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