A founder of FutureNet, a company that was promoted as a multi-level marketing program, has agreed to settle Federal Trade Commission charges that the program was actually an illegal pyramid scheme.

By Jeffery A. Babener © September, 1997 Without notice to the company, the Federal Trade Commission marched into federal court in Tucson, Arizona, armed with lengthy documentation and legal memoranda that had obviously taken the FTC some significant time to prepare. The FTC asserted that the JewelWay operation was an illegal pyramid scheme .....

AGREEMENT CONTAINING CONSENT ORDER The Federal Trade Commission has conducted an investigation of certain acts and practices of New Vision International, Inc., and NVI Promotions, L.L.C., corporations, and Jason Boreyko and Benson K. Boreyko, individually and as officers of the corporations, ("proposed respondents"). Proposed respondents, having been represented by counsel, are willing to enter into an agreement containing a consent order resolving the allegations contained in the attached draft complaint.

ANALYSIS OF PROPOSED CONSENT ORDER TO AID PUBLIC COMMENT The Federal Trade Commission has accepted an agreement, subject to final approval, to a proposed consent order from New Vision International, Inc., NVI Promotions, L.L.C., and their two principals, Jason P. Boreyko and Benson K. Boreyko ....

COMPLAINT: The Federal Trade Commission, having reason to believe that New Vision International, Inc., and NVI Promotions, L.L.C., corporations, and Jason P. Boreyko and Benson K. Boreyko, individually and as officers of the corporations, ("respondents"), have violated the provisions of the Federal Trade Commission Act, ....

Dennis Murphy, Principal Author; Theodore H. Hoppock, Michelle K. Rusk, Contributing Authors; A Joint Staff Report of the Bureaus of Economics and Consumer Protection, Federal Trade Commission, November 1998 The attached memorandum presents the results of a large scale advertising copy test project that was conducted jointly by the Division of Advertising Practices and the Bureau of Economics of the Federal Trade Commission.

A compilation of various FTC Cases. Multilevel Marketing Cases Federal Trade Commission

By Jeffrey A. Babener © 1998 The nature of multilevel marketing is such that rarely will there be a need for a comprehensive multi-media ad campaign. Most advertising is by face-to-face communication between sellers and potential customers. However, sales kits usually contain brochures and other promotional materials, labels contain representations, and these are subject to regulation the same as is the million dollar Madison Avenue barrage.

By Jeffrey A. Babener © 1998 The FTC rule, entitled "Cooling Off Period For Door-to-Door Sales," is one such regulation according a consumer a unilateral right to rescind his purchase agreement without penalty. "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."

February 1999 The Partnership for Healthy Weight Management; The Partnership: A coalition composed of representatives from science, academia, the health care professions, government, commercial enterprises, and organizations promoting the public interest.